Santander profits fall 4.1% after £450m PPI payout
Santander UK has reported a 4.1% fall in pre-tax profits to £1.3bn after setting aside a further £450m provision for PPI.
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Without the charge, Santander would have seen profits rise 20% year-on-year to £1,792m.
In its quarterly management statement, Nathan Bostock, Chief Executive Officer, said:
"We have provided £450m in response to the recent FCA consultation paper on PPI and the Plevin case. This charge represents our current best estimate of the remaining redress and costs, notwithstanding the ongoing nature of the consultation. Excluding the £450m charge, adjusted profit before tax was £1,792m, up 20% year-on-year, with strong business momentum. In terms of Banking Reform, we are close to submitting our near final plans on ring-fencing and remain in constructive dialogue with the PRA."
Net UK mortgage lending rose to £2.7bn, with gross mortgage lending of £26.5bn.
Applications rose 5% over the year, while 30,900 first-time buyers purchase their new home with the Bank. Interest-only mortgage balances decreased £1.8bn to £55.1bn while BTL mortgage balances increased £1.9bn to £5.0bn.
Lending with an LTV above 85% accounted for 16% of new business flow.
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