Santander net lending dives by 80%
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Santander’s net mortgage lending fell by a whopping 80% - from £5.5bn in 2010 to just £1.1bn - in 2011, its results revealed last week.
This was due to net lending falling to -£400m in H1 2011, but it managed to claw this back in H2, with net lending rising to £1.5bn.
Santander’s gross mortgage lending for 2011 totalled £23.7bn, 2% lower than the £24.2bn it lent in 2010. The lender recovered from a weaker H1 2011, in which it lent £9.7bn, to record gross lending of £14bn in H2 2011, an increase of 44% between the two six-month periods.
Its market share of gross mortgage lending was 17.3% in 2011, down slightly from 17.7% in 2010.
A spokeswoman for Abbey says: “First half lending was impacted by a weaker pipeline from Q4 2010 during which market pricing became less attractive in the lower LTV segments.”
The bank’s overall trading profit after tax was £1.5bn in 2011, down 6% on the previous year.
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