View more on these topics

Santander UK profits fall 24% as mortgage market share slumps

Santander-700x450.jpg

Santander UK has posted a pre-tax profit of €284m (£240m) for the first three months for the year, a fall of 24 per cent on the same period for 2012.

Santander UK made a pre-tax profit of €372m during Q1 2012.

The bank, which published its group results today, says its income has fallen due to higher funding costs and its strategy to be more selective about how it lends.

Santander’s gross mortgage lending market share fell to 9.6 per cent in March, compared to 16.5 per cent in March 2012. The lender attributes the fall to tightened lending criteria on higher loan to value mortgages and interest-only mortgages.

Gross mortgage lending totalled £3.3bn, down from £5.7bn in Q1 last year.

Overall Spanish parent company Santander saw profits fall 26 per cent to €1.2bn for the first quarter, down from €1.6bn from the same period in 2012. The results, however, are nearly triple the €423m reported for the final three months of last year.

Santander chief executive of the UK operations Anna Botin says: “Looking forward, I expect greater stability in our operating environment, in the context of a UK economy which remains subdued. We will continue our support of UK individuals, families and businesses and to act as a strong competitor on the high street.”

Yesterday Barclays reported that its first quarter profits plummeted by 25 per cent to £1.8bn as a result of the group’s restructuring programme.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Chickens, to, home, roost and coming, Spanish.

    Make a sentence

  2. Now why am I not surprised?? Having been a loyal mortgage customer for many years on interest only, with advanced plans for repayment of the loan, they had no desire to offer me any fair terms for a new interest only mortgage. I was simply fobbed off by being offered a new mortgage at almost doube teh rate that I was paying. They do not want loyal customers and made it clear that I would have got a much better deal if I was a ‘brand new customer only’. Hmmm wasn’t that someone else’s slogan!

    A rethink of how much they value their existing customers that provide their bread and butter business is clearly needed. Let’s hope that common sense prevails.

  3. Oh that is good news !

  4. There’s no such thing as “valuable customers”, it is profitable customers that matter, remember that…….

  5. Anon @ 4.50

    A little pompous me thinks ! Your comments carry more weight if you are not Anon !

    To get and keep ‘profitable customers’ you need to treat them properly – its mainly this lot doing the dirty on existing customers particularly those coming to the end of a deal. Most of the others are playing the game. Oh and making a profit !

    Its called market forces and is one (not the only) reason why profits are down – they are an appalling lender simple as !

Leave a comment