Its profit after tax for the nine-month period reached £1.05bn, more than triple the £228m it reported last year. During Q3, its pre-tax profits rose 19 per cent to £687m.
The bank said over the course of this year, it built on its position as the UK’s third largest retail mortgage provider in a competitive market. Its results showed that 84 per cent of its £209bn customer loan book was made up of mortgage lending. It also said the majority of its mortgage borrowers were prime with an average loan to value (LTV) of 41 per cent.
Santander’s net interest income rose by 25 per cent to £2.9bn which the bank said was due to repricing actions on its current and deposit accounts which offset base rate reductions.
Looking ahead, Santander said uncertainties remained towards the UK economy.
It said the ongoing effects of the pandemic as well as supply chain and labour disruption would impact the sustainability of the UK’s recovery. Santander also noted that inflation would influence interest rates which would likely affect the bank’s earnings.
The update added: “Increased competition for lending has affected mortgage application pricing which is likely to impact mortgage margins in the near term.”
Nathan Bostock, chief executive at Santander, said: “Our strong financial performance has been driven by the continuing success of our strategy and the hard work of our colleagues in supporting customers and communities whilst the UK economy reopened.
“Despite a more positive economic environment, conditions remain uncertain and a number of factors could impact the pace of recovery. While the pandemic’s trajectory over the winter remains unclear, I believe we are well positioned to grow and to support our customers over the years ahead, with strong capital and liquidity and proven balance sheet resilience.”