Tough backdrop takes toll on Santander
High street banking giant Santander has revealed a 35 per cent slide in first-quarter profits after being knocked by Brexit uncertainty and competition in the mortgage market.
The Spanish-owned lender reported pre-tax profits of £270 million for the first three months of 2019, down from £414m a year earlier.
Underlying pre-tax profits fell 13 per cent to £352m in the first quarter.
The group said results suffered as the wider economy has been held back by Brexit fears, as well as mortgage margin pressure, costs of its swingeing overhaul, and charges related to ring-fencing to keep retail banking services separate from corporate and investment banking activities.
The figures come after Santander announced earlier this year that it is to axe 140 branches across the UK, putting more than 1,200 jobs at risk.
First-quarter figures showed it booked £77m in charges related to the overhaul.
Nathan Bostock, chief executive of Santander UK, said: “Our first-quarter results reflect the impact of the highly competitive mortgage market, a demanding regulatory change agenda and the uncertain economic environment in the UK.
“In this context, we have accelerated our multi-year strategic transformation programme, with a focus on simplifying, digitising and automating the bank for our customers, to deliver on our strategic priorities and significantly improve operational efficiency over time.”