Santander is cutting more than 1,400 jobs across its UK business this year as part of its efforts to reduce costs.
The Spanish bank’s chief executive officer, Hector Grisi, confirmed the cuts as its UK division delayed publication of its latest financial results to consider the impact of an influential court ruling linked to commission on car finance.
Grisi told a press conference on Tuesday that the company would cut 1,425 jobs in the UK as it automated more of its operations. It is understood that the redundancies are largely completed and will be done by the end of the year.
The company had 21,812 workers in the UK at the end of September, according to its latest financial report.
The delay in announcing Santander’s UK financial results came as the wider Madrid-based bank revealed its profit was up more than 10% in recent months.
Santander UK said it disagreed with the conclusions reached by the court of appeal, which on Friday sided with consumers in a row over commission earned by companies selling car finance loans.
In the case, three people claimed they did not know their dealer was receiving more commission as a result of fixing a higher interest rate on their credit agreement.
The judgment sets a precedent for the wider motor finance industry by ruling that any dealers receiving commission from lenders must ensure their customers are fully informed.
Santander, which offers car loans, said the judgment set “a higher bar” for the disclosure of such commission arrangements “than had been understood prior to the decision” under current laws and regulations. The lender said it disagreed with the court’s conclusions.
Santander added it would not be able to “reliably estimate at this point in time the extent of any potential financial impact”, but it was taking time to consider the judgment and the “potential exposure” it created for the bank.
It is a similar response to its rival banking group Lloyds, which said on Monday it, too, was assessing what impact the judgment may have.
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The court ruling could lead to big changes for lenders and a flood of complaints from people who have been sold car finance loans.
Meanwhile, the wider Santander Group published its third-quarter financial results on Tuesday, reporting a pre-tax profit of €4.9bn (£4.1bn) between July and September, 11% higher than the same period last year.
Ana Botin, the executive chair, said: “In an increasingly volatile geopolitical environment, we are confident that we will maintain this strong momentum throughout the rest of the year, delivering on all our targets, and continuing into 2025.”
Santander’s UK arm did not say when it aimed to publish its financial results.
Source: theguardian.com
