Santander profits slip 21% as 'competitive pressures' rise

Despite falling profits, Santander says it has seen "exceptionally strong net mortgage growth" of £1.9bn, with gross lending at £7.6bn in Q1.

Provisions also remained low, with no additional PPI or other conduct charges in the quarter.

Santander also noted that its digital offering continues to grow, gaining an average of 1,100 new mobile users per day and retaining 54% of its mortgages online in Q1.

Nathan Bostock, CEO of Santander, commented: “Our first quarter results have been impacted by ongoing competitive pressures in the UK. However, we have continued to make progress across key areas of the bank, fulfilling our purpose to help people and businesses prosper. We have delivered exceptional growth in mortgage lending this quarter, and continued to support our corporate customers through our international offering as they expand into overseas markets.

“We have maintained our investment in business transformation and growth initiatives even though regulatory, risk and control costs stepped up, given a number of major projects are due to be implemented during 2018. Cost discipline remains an area of particular focus for management, with targeted actions expected to reduce the cost run rate over the year and deliver operational efficiencies.

“We are further developing our proposition through products and services tailored to add value and meet customer needs, which in turn drive improvements in customer experience.

“With ongoing investment in business transformation and growth initiatives and our relentless focus on cost management, we expect to achieve stronger results over the course of the year and deliver on the majority of our 2016-18 commitments, as previously guided.”