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Santander UK’s impairment losses drop nearly 100%

Credit impairment losses at Santander UK dropped by £160m compared to Q1 2020 – to just £5m – according to its Q1 results update.

The results, which also show that pre-tax profit increased 60% to £184m for Q1, from £114m in Q1 last year, depict how the improving economic outlook has helped shaped its financials so far in 2021.

 

Nathan Bostock, chief executive of the bank, said: “As the UK begins to emerge from the pandemic, our priority continues to be to support customers, colleagues and communities at what remains a difficult time for many.

 

“Although the economic outlook is more positive, market conditions will remain uncertain given the low interest rate environment and the lasting impacts of the pandemic. We plan to continue focus on delivering an excellent customer experience, while further simplifying how we operate and improving our digital capability.”

 

Payment holidays

 

Customers supported

Total loans granted payment holidays

Outstanding payment holidays

Mortgages

255,000

£36.4bn

£1.4bn

Consumer (auto) finance

57,000

£0.5bn

£0.1bn

Unsecured personal lending

36,000

£0.2bn

<£0.1bn

Credit cards

34,000

£0.1bn

<£0.1bn

 

IFRS 9

 

Balances at stage 2

Balances at stage 3

Three-month gross write-offs

Loan loss allowances

Retail banking UK

£12.7bn

£2bn

£35m

£683m

Corporate and commercial banking

£5.2bn

£1bn

£3m

£581m

 

Operations

The results update states that an accelerated transformation programme has seen a £238m investment in Q1, including a 40% reduction in head office space.

 

The results also confirm that 111 branches will close this year amid the ongoing shift by customers towards mobile and online banking, a long-term trend which accelerated during the Covid-19 crisis. A network of 452 branches will remain, providing broad coverage across the UK.

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