Santander’s profits have collapsed. (Image: Getty)
has reported a sharp decline in annual profits in the UK, with earnings falling nearly 40% amid ongoing speculation about the future of its British operations.
The Spanish-owned banking giant saw pre-tax profits drop 38% to £1.33 billion in 2024 after taking a hit from provisions for possible motor finance mis-selling and higher rates.
It comes as questions remain over the future of the UK business, despite efforts by Spanish owner Banco Santander to quash rumours that the lender is .
Santander executive chair Ana Botin recently insisted that “we love the UK” and Britain remains a core market for the firm.
She told the Sunday Times: “The UK is profitable, the UK provides diversification to us because it’s a different currency, it’s a low-risk balance sheet, and I’m very happy with how the UK is making progress.”
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The Spanish-owned high street banking giant reported a 38% drop in pre-tax profits in 2024 (Image: Getty)
However, according to the Financial Times, a sale of the high street bank would still be considered if a buyer came forward with a high enough offer.
Santander UK’s annual profit slump comes after the bank set aside £295million in the third quarter to cover potential payouts and legal costs following a major court ruling on car finance commission last autumn.
The lender was also hit by the high cost of savings products and strong demand earlier in the year, though it later reduced rates in 2024 to curb their appeal.
In addition, fourth-quarter profits fell 8% year-on-year to £383million.
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But Mike Regnier, chief executive of Santander UK, said: “While challenges remain, and there have been mixed signals about the UK’s recent economic performance, the outlook for our business has improved.
“We will continue to work with Banco Santander to harness the best of our local and global capabilities.”
Speculation over Santander’s potential exit has raised concerns about the impact on customers. Ben Thompson, deputy CEO of Advice Bureau, suggested that a sale is the most likely outcome, given the appeal of Santander’s UK assets to potential buyers.
He noted that if a deal were reached, most customers – whether borrowers or savers – would see little disruption.
However, the broader concern centres on competition in the UK banking sector. Alastair Douglas, CEO of personal finance app TotallyMoney, warned that if Santander were acquired by another major bank, it could limit consumer choice and weaken market competition.
A Santander UK spokesperson said: “We remain focused on providing excellent products and services to our 14 million customers in the UK. The UK is a core market for Santander, and this has not changed.”