Santander Forecasts Interest Rate Drop Amid Rising Loan Defaults

Despite a rise in annual profits, the bank warns of an increase in borrowers falling behind with repayments.

Santander UK reports a rise in annual profits, boosted by higher interest rates, but warns of increasing numbers of borrowers falling behind with repayments.
The bank predicts interest rates will fall from 5.25% to 4.5% by the end of the year, easing pressures on borrowers but potentially impacting bank profits.
Santander's global group, headquartered in Spain, saw a 28% profit rise to €2.9 billion for the year, despite a struggling US car loan business.
The bank's mortgage book suffered amid a slowing housing market, with an £11.9 billion drop in mortgage lending in 2023.
Santander upgrades its economic forecast for the UK, predicting growth of 0.4%, rising to 1.3% next year, and a recovery in the housing market.