Santander's higher Q3 lending boosted by UK arm

Santander UK saw profit before tax increase to £1.4bn in Q3 compared to £1bn in Q3 2014.

Customer loans grew £7.4bn to £198.1bn, with a net £2.2bn increase in mortgage balances and a net £2.3bn in corporate lending balances.

Nathan Bostock, Chief Executive Officer, said:

“I am pleased to report solid results for the first nine months of the year, with good momentum in profitability underpinned by strong flows, significantly lower provisions and growth in net interest income.

"Net lending to UK companies increased by £2.3bn to a total of £26.2bn, maintaining the positive momentum seen throughout 2015, while net mortgage lending improved to £2.2bn, with a retention rate of c.80%.

"We note the PRA’s consultation on Banking Reform, which we are reviewing, and remain in close and constructive dialogue with the PRA. In terms of the provisional CMA investigation findings, we support the desire to engage customers and to make it easier to compare banks and to move accounts.

The positive economic outlook remains supportive of our business, but we are mindful, like other challengers, that our future earnings will be impacted by the bank corporation tax surcharge and increasing pressure on asset margins."