The financial institution warned of “important uncertainties” relating to the impression of the motor finance compensation scheme.
Santander to chop prices additional regardless of 14% hike in earnings (Picture: Getty)
Santander UK has warned of additional cost-cutting over the 12 months forward, regardless of a hike in annual earnings. The Spanish-owned lending big reported a 14% rise in pre-tax earnings to £1.51 billion for 2025.
The rise comes even with the extra provision for motor finance compensation and prices, on prime of £295 million for the saga in 2024, having earlier cancelled third-quarter outcomes to evaluate the impression of the Monetary Conduct Authority’s redress scheme. However the financial institution cautioned, “there proceed to be important uncertainties as to the character, extent and timing of redress funds”. It added: “The last word monetary impression may very well be materially increased or decrease than the quantity supplied.”
The financial institution warned of “uncertainties” relating to the impression of the motor finance compensation scheme (Picture: Getty)
In full-year outcomes, it additionally set the scene for extra cost-cutting in 2026, lower than per week after it revealed plans to close one other 44 branches, placing almost 300 jobs in danger.
Santander stated it expects additional price efficiencies in 2026, “pushed by simplification and automation of our enterprise”.
Final week’s department closure announcement, which may put 291 jobs in danger, will go away the financial institution with 244 full branches, though it’ll add extra via the deal to take over smaller rival TSB.
It stated it expects to finish the £2.65 billion TSB deal within the first half of 2026.
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The UK financial institution outcomes got here after its Spanish proprietor, Banco Santander, introduced a 12.2 billion US greenback (£8.9 billion) deal to purchase American rival Webster Financial institution.
Banco Santander reported a better-than-expected internet earnings of three.76 billion euros (£3.24 billion) for the fourth quarter, having introduced the outcomes ahead by a day as a result of announcement of the deal.
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