Santander UK profit up 55%

by Gill Montia

Story link: Santander UK profit up 55%

Banco Santander has met its 2009 target, with attributable ordinary profit of €8.943 billion (up 1% on a year earlier).

Revenues rose 18% and the group says it continues to progress in its geographical diversification.

Continental Europe contributed 48% of group profit (Spain accounts for 26%); Latin America, 36% (Brazil accounts for 20%); and the UK 16%.

However, the bank needed to make a provision of €9.484 billion for bad debts in 2009, up 44% on a year earlier.

Turning to the UK, Santander reported attributable profit of £1,536 million (up 55% on a year earlier); loans grew by 5% and deposits by 8% in pounds.

The rebranding of Abbey and Alliance & Leicester to the group name will be completed this year, as the bank continues to focus on growing its share of the UK current account and mortgage market.

Last year, UK mortgage arrears stood at 1.37%, compared to the industry average of 2.4%.

Banco Santander ended 2009 with managed funds of €1.245 trillion, representing a year-on-year increase of 7%, and the bank’s Tier 1 ratio stood at 10.1%.