Santander UK profits drop 38% amid finance scandal

Santander UK reported a significant 38% decline in pre-tax profits for 2024, falling to £1.33 billion, primarily due to provisions for potential motor finance mis-selling and rising savings rates. The bank set aside £295 million in the third quarter to address legal costs following a court ruling on car finance commission. Despite ongoing speculation about a potential exit from the UK market, executive chair Ana Botin reaffirmed the UK's importance to the firm, stating, "we love the UK" and emphasizing that it remains a core market. However, there are indications that Santander might consider selling its UK operations if a suitable offer arises. The bank's challenges also included a 5% drop in mortgage lending and customer deposits, though it forecasts a gradual return to growth in the mortgage sector. Experts warn that Santander's departure could adversely impact competition and stability in the mortgage market.