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Santander profits hit by new bank tax

Santander profits hit by new bank tax

Santander has reported a profit before tax of £1.07bn for the first half of this year, up 16 per cent on the first half of 2015.

Net mortgage lending hit £0.6bn and net lending to corporates was £2bn at the start of this year.

Yet despite the amount of loans Santander arranged, and customer funds increasing in the UK in the first half of this year, the wider Banco Santander group posted a 50 per cent year-on-year fall in second-quarter net profit.

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In terms of the impact of the UK arm on the overall group, it reported an attributable profit of €843m (£656m) in the first half of this year, down 12 per cent per cent, due to the impact of the new bank tax.

The steep fall in the value of the pound after the Brexit vote also had an impact and saw net profit for Santander in the UK, when converted into euros, slip 14 per cent from the first quarter to the second.