Santander saw a 33% year-on-year (YoY) growth in bottom-line profit to £750m, underpinned by £6.7bn of net mortgage lending, according to its latest interim results.
Net interest income stood at £2.1bn, an 11% improvement over the year. The Bank also reported a 12% reduction in operating expenses attributable to Santander’s multi-year transformation programme, although inflation is expected to impact year-end results.
Over £100mn in credit impairment charges were noted due to deteriorating economic conditions.
The Bank has also set aside £20m this year for expected credit losses through mortgage defaults, after reserving no funds for them in 2021 or 2020.
Mike Regnier, chief executive of Santander, said: “Despite the uncertain operating environment, the hard work of our teams across the business has helped us deliver a strong set of results for the first half of the year.
“Our ongoing transformation programme has realised £572m savings which has helped to mitigate the impact of rising inflation.”
