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Profits at Santander UK climb 30%

Santander UK has posted a 30% rise in annual pre-tax profits to £1.54bn for the year to December 31 and increased its gross mortgage market share.

Santander’s UK banking arm, which recently completed its rebranding of Abbey and Bradford & Bingley branches, increased its gross lending share of the mortgage market to 18.6%, from 13.9% in 2008.

But gross mortgage lending went from £35.2bn in 2008 to £26.4bn last year.

Net lending for the UK businesses, which also includes Alliance & Leicester, rose to £7.6bn in 2009 compared to £6.1bn in 2008.

The mortgage book’s average LTV stands at 52% for existing stock and 64% for new business.

The proportion of mortgages in arrears by three months or more is 1.37%, against the industry average as of last September of 2.4%.

Repossessions have fallen from 969 in 2008 to 820 last year.

Santander says that comparing the second half of 2009 to the first half, mortgages drove the UK business performance which the lender attributes to a reduction in fraud.

Overall the Santander Group posted a profit of €8.9bn (£7.8bn), up 1% from 2008 figures.

António Horta-Osório, chief executive of Santander UK, says: “Our full year results demonstrate clearly our business model and strategy are delivering superior results, allowing us to increase profits and revenues, balanced against controlled costs and prudent lending.

“Our ongoing focus on efficiency means we can continue to share the benefits of this cost advantage with our customers through competitive products, demonstrated by us having more best buy mentions than any other high street bank.

“This has enabled Santander UK to write significant new business and continue to support the UK economy with increased lending to home owners and businesses.”

Santander completed its rebranding of Abbey and B&B’s savings business last month, giving its UK customers access to around 1000 Santander branches.

The branch network is set to increase to 1300 by the end of the year following the rebranding of A&L.

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  • Ron Radway 5th February 2010 at 10:28 am

    So, the deliberate policy to shaft their life blood, Brokers, seems to have paid off–expect more of the same!
    I note 820 Repos this year, & no doubt very distressing for the 820 involved but it hardly constitutes a crisis in Lending Policy-& presumably, these particular mortgages are fairly historical, were Underwritten in more lax times, placed by unscrupulous Brokers.Perhaps we’re not as bad as painted.
    I think Antonio suffers from Bankers’Syndrome-the assumption that short term results equate to long term success- I only have only one thing to say to Senor Santander “Quien la hace la pada”!

    (For translation, see Marks’ Message)

  • Mark 4th February 2010 at 11:02 pm

    As an ex employee this may be perceived as a bad eggs comment but with total integrity I have to say that the price for being the strongest bank in the UK has been to the cost and detriment of its staff who in the main are relentlessy challenged and without thanks.”What comes around goes arounD” !!!

  • Mark 4th February 2010 at 11:02 pm

    As an ex employee this may be perceived as a bad eggs comment but with total integrity I have to say that the price for being the strongest bank in the UK has been to the cost and detriment of its staff who in the main are relentlessy challenged and without thanks.”What comes around goes arounD” !!!

  • Mark Stroud 4th February 2010 at 11:16 am

    This profit should increase this year as they are contacting existing clients with products maturing in the summer and offering fantastic retention deals. Hey Ho!

  • Ron Radway 4th February 2010 at 10:36 am

    It would appear then that their deliberate policy of shafting brokers is paying dividends, so we could look forward to further implementation!!

    I also note that 820 Repo’s, not matter how distressing it is for those directly involved, hardly constitutes a crisis in mortgage lending-presumably these recalcitrant mortgages are historical, many of which were written by those terrible brokers who took advantage of the lax underwriting of the previous regime.
    I guess that Antonio suffers from the same problem as all Bankers in that they cannot see beyond short term answers to long term issues, & I only have one thing to say to Senor Santander- “Quien la hace la pada”!!