Santander UK's profits jump 10%
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Santander UK’s H1 2010 profits jumped by over 10% to £875m, despite Santander Group profits falling 1.6%.
On the back of the results the bank has announced it will create over 600 jobs in UK branches and call centres to grow their market share.
The Group’s H1 profits are 4.445bn euros despite the slight drop.
It pledges to increase lending to small and medium-sized businesses by 20% and continue to write one in five mortgages to UK households.
Gross UK mortgage lending was £12.3bn which is ahead of last year and their stock share.
The H1 report states: “The UK economy has made modest progress but demand for credit is subdued and we expect the market will remain challenging.
“House purchase volumes are higher than a year ago, but remain low relative to the past decade, and house price inflation remains stable. We therefore expect interest rates to remain low for the rest of this year.”
The stock of properties in possession has decreased slightly from H1 2009 and represents only 0.06% of the overall portfolio versus the Council of Mortgage Lenders average of 0.13%.
In terms of three month plus arrears, this has decreased slightly from Q1 2010 at 1.42%, compared to the CML average of 2.22%.
Cost to income ratio has dropped from 70% when Santander acquired Abbey to below 39% now.
In the first six months there were deposits of £4.6bn from retail, corporate and private banking clients, an 11% increase on the previous year.
There has been an 11% growth in commercial deposits, more than twice the growth in commercial assets of 5%.
As a result, the loan to deposit funding ratio improved by more than 8% to 124%, compared to 132% last year and 167% in 2008.
The average LTV on new business completions is 62% with stock at 51%.
