Santander profits run into billions after turnaround year

SANTANDER had its best quarter for 12 years as Covid loan losses were written back on to the balance sheet and economies recovered from the pandemic.

The giant bank made profit for the year of e8.1 billion across the globe. That’s a complete turn around from the e8.7 billion loss recorded in 2020.

In the UK, profit jumped 266% to £1.85 billion, as £223 million in impairment loan provisions went back to the bank.

Departing UK CEO Nathan Bostock says the bank, promoted in ads by Ant and Dec, has cemented its position as the third largest mortgage lender in the UK.

Rising interest rates are expected to boos all bank profits this year.

Santander is facing costs from shutting branches and reducing office space, however. It also noted rising fraud -- £249 million was spent on liabilities, which include payments to defrauded customers.

The bank paid out £130 million on Christmas Day to 75,000 accounts – by mistake. It said this was a “technical error” and quickly took the money back.

Bostock is handing over to Mike Regnier to take on a role overseeing the bank’s investing platforms.

He said: “I feel incredibly privileged to have led Santander UK over the past seven years and particularly proud of the difference we have made for customers and communities across the UK, not least through the vital help we provided during the pandemic.”

Ana Botin, the group executive chair, said the results showed “the value of our scale and presence across both developed and developing markets”.