In its first-quarter report, Santander 海角视频 announced a significant increase in provisions amidst growing criticism towards its branch closure plans.
The lender, headquartered in Spain, recorded a 69% jump in provisions for liabilities and charges, amounting to £140m, with the company attributing £42m to "charges relating to changes to our branch network."
Santander is preparing to shut down 95 branches come June 2025 while introducing a new community bankers initiative aimed at providing face-to-face support in different areas, as reported by .
READ MORE: {}
According to financial records, credit impairment charges reached £33m and showed signs of returning to "pre-pandemic levels after a period of write-backs."
Concurrently, non-interest income witnessed a 19% reduction, falling to £77m.
Despite the challenging financial climate, the bank managed to eke out a 6% rise in net interest income to £1.1bn.
With the Bank of England slicing interest rates from a post-financial crisis peak of 5.25% last July to 4.5%, financial institutions are bracing for impacts on their interest income.
Santander 海角视频's net interest income edged up
Nevertheless, operating costs at Santander 海角视频 have seen a marginal decrease of 1%, credited to cost-cutting measures, simplifying and automating business operations, along with a reduced workforce.
Most Read
Even with these efficiencies, pre-tax profits dipped by 8% to £358m, a fall from £391m in the first quarter of 2024.
Making a bold move in the mortgage realm, Santander emerged as the inaugural lender to lower mortgage affordability rates last month, this adjustment allows customers to access higher borrowing amounts.
In terms of mortgage lending, the firm marked an increase year-on-year with gross mortgage lending reaching £5.8bn, up from £3.1bn in 2024.
Earlier this month, the lender separated from its litigation-embroiled motor finance division. Santander has allocated £295m in provisions for the car mis-selling scandal, with a ruling from the Supreme Court anticipated in the early summer.
This development comes amid broader conjecture that the Spanish company is preparing to downsize its 海角视频 operations as part of a significant restructuring of its business activities.
Mike Regnier, Chief Executive of Santander 海角视频, stated: "The progress we are making drove improved business performance in the first quarter, with an increase in net interest income and a reduction in operating expenses."
"However, charges relating to changes to our branch network resulted in a lower profit before tax of £358m for the quarter."
Regnier further added: "Looking ahead, we will look to build on our positive momentum and will continue to work closely with Banco Santander to ensure that we harness the benefits of being part of a global business."