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Santander has reported higher profits in the UK as the future of its business in the country remains in doubt.
The Spanish bank said on Wednesday that its net profits in the UK rose by 10 per cent from the previous year to €331mn in the final quarter of 2024.
While Ana Botín, Santander’s executive chair, has said the UK will remain a “core market” for the bank, people familiar with the matter have said a potential sale of the high street bank is not being ruled out if a suitor approaches it with an attractive offer.
Overall, Santander reported an 11 per cent increase in quarterly net profit to €3.27bn, comfortably ahead of market expectations.
For the whole of 2024, Botín said the bank achieved record results for the third year in a row.
“Our track record shows that in a challenging market we outperform peers and in 2025 we expect to grow our bottom line and profitability — with revenue stable and costs falling,” she said. “And we are only scratching the surface of our potential.”
The bank intended to return €10bn to shareholders through buybacks from 2025 and 2026 earnings, she added.
In the UK, Santander said loan volumes were down 4 per cent to €230bn “as a result of our focus on profitability”.
UK deposits and the size of its mutual funds business in the country also shrank as they were “impacted by a competitive environment”, the bank said.
https://www.ft.com/content/597eb4dc-4002-4c36-95d3-8a7579e67457
