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.