RE: Lloyd’s SP25 Apr 2023 10:04
Santander wary of housing market slowdown
Santander UK has recorded a jump in its profit and income, but cautioned over a weaker housing market and inflation set to further reduce consumer spending.
The bank made a pre-tax profit of £547m in the first quarter of the year, up 11pc from the £495m made last year.
It also saw its total operating income increase by 11pc to total £1.3bn, which was largely driven by higher interest rates, the lender said.
But the bank flagged a decline in mortgage applications by 37pc, amid a slowdown in the housing market with house prices set to fall back to 2021 levels.
It also set aside £9m in credit impairment charges, which cover expected losses if people cannot repay loans, due to the weaker UK economic environment, it revealed.