Santander UK Profits Drop 38% as Motor Finance Scandal Raises Questions About British Operations

The bank faces challenges from mis-selling provisions and declining mortgage and savings figures while speculation grows over its future in the UK market.

• Santander UK's pre-tax profits fell to £1.33 billion in 2024, a 38% decline attributed to provisions for potential motor finance mis-selling and higher savings rates.
• Reports suggest Banco Santander may consider selling its UK division if a strong offer arises, though executives maintain that the UK remains a core market.
• The British branch saw a 5% drop in both mortgage lending and customer deposits, reflecting broader economic challenges and shifting market conditions.
• Banco Santander, the parent company, reported a 16% increase in pre-tax profits globally, driven by strong performance in Europe and Latin America.
• The group plans to cut costs through automation and simplification, alongside a €10 billion share buyback program from 2025 and 2026 earnings.

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