US EditionSantander to cut costs further as profits rise despite another motor finance hit
Santander UK’s 14% profit increase to £1.51bn in 2025 includes £183m extra motor finance provisions and signals ongoing cost cuts and branch closures amid FCA redress uncertainty.
- In the 2025 results, Santander UK, the UK division of Banco Santander, reported a 14% rise in pre-tax profits to 1.51 billion pounds and added an extra 183 million pounds for motor finance compensation.
- Amid the Financial Conduct Authority's proposed redress, Santander UK warned there are significant uncertainties over redress timing and impact, having earlier cancelled third-quarter results.
- The lender boosted its car loan compensation fund to 461 million as about 14 million deals could be eligible and customers may get an average 700 payout, while bad debt charges nearly tripled to 193 million last year and are expected to rise further in 2026.
- Plans to close 44 branches will put nearly 300 jobs at risk and the bank said it expects further cost efficiencies in 2026 driven by simplification and automation.
- Santander's UK results came after Banco Santander announced late on Tuesday a 12.2 billion US dollar deal to buy Webster Bank, with Mahesh Aditya set to become CEO on March 1, replacing the outgoing chief.
12 Articles
12 Articles
Santander attacks FCA ‘overreach’ as UK car finance scandal bill passes £460m – Your Capital Minds
Santander has renewed its criticism of the City watchdog after its compensation bill for the UK motor finance scandal climbed above £460 million, as the bank’s Spanish parent pressed ahead with a surprise $12 billion takeover in the United States. The UK arm of Santander said it had set aside a further £183 million to cover compensation linked to unfair car loan commission arrangements between lenders and dealers, taking its total provision for …
Santander attacks FCA ‘overreach’ as UK car finance scandal bill passes £460m
Santander has renewed its criticism of the City watchdog after its compensation bill for the UK motor finance scandal climbed above £460 million, as the bank’s Spanish parent pressed ahead with a surprise $12 billion takeover in the United States. The UK arm of Santander said it had set aside a further £183 million to cover compensation linked to unfair car loan commission arrangements between lenders and dealers, taking its total provision for …
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