Mortgages  

Santander reveals plans for lending in 2014

Santander has reported a profit after tax of £921m for 2013, up 13 per cent on 2012’s figure.

In its annual results, published today (30 January), Santander revealed gross mortgage lending increased £4bn last year to £18.4bn.

But overall loans fell 4 per cent, because of a decrease in mortgage lending, but loans to companies rose 13 per cent.

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Deposits overall declined 3 per cent, as high interest accounts matured, but balances in Santander’s current accounts jumped by 75 per cent, or £12bn, and the bank gained 1.1m new customers.

Ana Botín, chief executive of Santander UK, said: “The UK economic recovery is strengthening, although uncertainties remain in the banking environment for the year ahead.

“This year we will continue with our significant investment in strategic initiatives to expand further our commercial businesses, to improve our retail banking offering and enhance the experience of our customers interacting with us across all channels.

“We will continue to support our customers and the broader economy: our intention is to grow both our commercial and retail lending in 2014. We remain confident that we will deliver on our key commitments for the end of 2015.”

However the results also revealed customer deposit outflows of £4bn, which bosses said reflected a managed reduction in rate sensitive deposits without a broader customer relationship and a lower retail funding requirement with outflows largely from eSaver accounts.