Everything you need to know as Santander gives update on £829 payments | Personal Finance | Finance

Need to know: Santander UK profits plunge amid motor finance scandal

• Santander UK’s profits have plummeted by 44% in the first quarter after setting aside nearly £180 million for the motor finance mis-selling scandal.
• The high street lender posted pre-tax profits of £202 million, down from £358 million a year earlier. The bank’s total provision for the motor finance saga now stands at £633 million.
• Santander also recorded a £73 million charge for bad debts, up 40% year-on-year, as it downgraded its UK economic outlook due to the Iran war. The bank predicts economic growth of just 0.5% in 2026 and unemployment rising to 5.5%.
• New chief executive Mahesh Aditya said the group had not yet witnessed significant borrower difficulties from the Iran war cost surge. He stated: “While we are not yet seeing any significant impact of the current uncertain global economic environment on our customers, we have put measures in place including a proactive outreach programme offering support.”
• The bank confirmed it would not contest the Financial Conduct Authority’s motor finance redress proposals. Payouts are due on approximately 12.1 million mis-sold deals at an average of £829 each.
• Santander’s £2.65 billion acquisition of TSB is expected to complete imminently following regulatory approval.

READ THE FULL STORY: New Wednesday update for Santander customers with £829 payments coming