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Santander reports 25% increase in UK profits

Pre-tax profits at Santander’s UK arm rose by 25% to £372m for the first quarter of this year, with revenues up 24%.

The Spanish banking giant says this is partly reflective of sterling’s depreciation against the Euro, but says the acquisitions of B&B and A&L also had a favourable impact.

These are the first set of results which combine the performance across all three of the UK brands.

Loans to customers for Q1 were at £133bn, 8% higher than in March 2008.

Santander says this is due to an 8.4% annual increase in residential mortgages with the bank recording total loans of £184bn, including A&L.

Gross mortgage lending share for Abbey was 13% and 15% including A&L.

In its financial report the bank says: “Santander UK retains its ability to continue lending mortgages even in difficult times, resulting in a strong increase in the estimated mortgage net lending share relative to Q1 2008.

“This increase is due to Abbey, and not to A&L, as its back book is being
managed to match the return (profitability) and quality of the portfolio to the group’s standards in the UK.”

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