Santander UK profit soars two-thirds
Santander UK hailed a “strong” set of results this morning as profit before tax rose nearly two-thirds in the first quarter.
The bank said that pre-tax profit was up 61 per cent, jumping from £114m to £184m over the three month period.
It added that its return on tangible equity (RoTE), a key metric, was also up from 4.3 per cent to 9.4 per cent.
Shares in the firm rose 1.8 per cent this morning.
Today’s results come a month after the bank, a wholly-owned subsidiary of Spanish bank Santander, said it would close 111 branches in the UK.
It follows a number of fellow banks in slimming down its bricks-and-mortar estate due to changes in consumer behaviour. 840 staff will be affected by the move.
Commenting on the results, chief executive Nathan Bostock, who will leave the firm he has run since 2014 at the end of the year, said:
“This is a strong set of results which demonstrates the progress we are making in transforming the bank for the future and reflects the strategic decisions we have taken.
“As the UK begins to emerge from the pandemic, our priority continues to be to support customers, colleagues and communities at what remains a difficult time for many.
“Although the economic outlook is more positive, market conditions will remain uncertain given the low interest rate environment and the lasting impacts of the pandemic.
“We plan to succeed by continuing to focus on delivering an excellent customer experience, while further simplifying how we operate and improving our digital capability.”