Santander UK posted mortgage lending down £2.5bn within the first three months of its yr, attributable to “disciplined pricing actions”.
The British arm of the worldwide financial institution reported that home loans slipped 1.4% to £172.7m in March from the tip of final yr, in accordance with a buying and selling assertion.
Overall, the lender stated its UK pre-tax earnings tumbled 29% to £391m, citing larger deposit and working prices.
Its web curiosity margin — a key measure of curiosity paid on deposits in opposition to curiosity earned on loans – was down 4 foundation factors to 2.07% from the earlier quarter and 14bps decrease than a yr in the past.
The lender stated: “We intend to continue to prioritise profitability, capital generation and our core banking franchise in 2024, through planned balance sheet optimisation, resulting in lower mortgage lending and customer deposits.”
Santander UK chief government Mike Regnier added: “This quarter’s outcomes are according to our expectations. We have seen encouraging development in our company and business business utilizing our world community to assist businesses into new markets.
“We additionally launched new merchandise to assist our prospects’ altering wants, together with the Edge bank card with cashback and 95% LTV mortgages for brand new build properties – supporting aspiring householders, significantly first-time patrons.
“The recent fall in the rate of inflation will be welcomed by our customers who continue to face cost of living pressures.”
The wider Santander group posted an increase in quarterly revenue up 11% to €2.9bn (£2.5bn) because it benefitted from larger rates of interest throughout its numerous markets world wide.
