Mis-sold Mortgage Claims > Mortgage News
Santander Profits Decline due to Mis Selling Financial Products
Fri, 03 Feb 2012
Santander's profits dropped by 40 per cent in 2011 after the bank had to pay out £538 million to compensate customers for mis-sold loan insurance .

Without having to make the payout for the payment protection insurance, UK profits dropped 6 per cent £1.5billion as a result of rising costs and firm competition.

Ana Botin, company boss, cited that there had been a 25 per cent increase in small business lending to £10.7billion.

The bank maintained its share of new mortgage lending. However, it witnessed net lending nose dive 80 per cent to £1.1 billion; this takes into account repayments and as well as people switching,

Santander did benefit from a 38 per cent drop in bad debts to £508m, most of this due to only offering unsecured loans to existing current account customers.

The bank has 836,000 current accounts opening over the year and issued 543,000 more credit cards, an increase of 25 per cent.

There were 145,000 new 123 Cashback Credit Cards which pay 1 per cent for the money you spend in supermarkets, 2 per cent in department stores and 3 per cent on petrol.

After taking away the value of investments in Spain and Portugal, the group's Spanish owner's profits fell by a huge 98 per cent.
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