You are here: Home - Mortgages - Remortgage - News -

Santander profits dive 43% from mortgage competition and PPI

Written by:
Santander’s UK business saw profits before tax fall to £785m for the nine months to September, a 43 per cent drop on the same period last year as the bank was hit by £169m in mis-sold payment protection insurance (PPI) charges.

Santander’s underlying profit for the first nine months of the year also fell to £731m, a 19 per cent decline on the previous year’s £904m. 

The group said the decline reflected the “continued competitive pressure on mortgage margins” and £3bn of standard variable rate (SVR) attrition.

In August, the bank was ordered by the Competition and Markets Authority to appoint an independent body to audit its PPI policies following a series of failures to send accurate reminders. 

In better news, Santander’s new business gross mortgage lending increased by £200m year-on-year to £21.6bn, up from £21.4bn in the first nine months of last year.

It also saw its mortgage book net lending grow by £3.6bn during the period. 

Chief executive Nathan Bostock said: “The uncertain economic environment looks set to continue for some time, reinforcing our longstanding prudent approach to risk.  

“We are delivering excellent customer experience while taking decisive steps to improve our efficiency and competitiveness.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Workers need to save £800 a month to afford ‘moderate’ retirement

The average worker on a full-time salary needs to save around £800 a month, or a quarter of their earnings,...