Santander UK’s impairment losses drop nearly 100%

The results, which also show that pre-tax profit increased 60% to £184m for Q1, from £114m in Q1 last year, depict how the improving economic outlook has helped shaped its financials so far in 2021.

Nathan Bostock, chief executive of the bank, said: “As the UK begins to emerge from the pandemic, our priority continues to be to support customers, colleagues and communities at what remains a difficult time for many.

“Although the economic outlook is more positive, market conditions will remain uncertain given the low interest rate environment and the lasting impacts of the pandemic. We plan to continue focus on delivering an excellent customer experience, while further simplifying how we operate and improving our digital capability.”

Payment holidays

IFRS 9

Operations

The results update states that an accelerated transformation programme has seen a £238m investment in Q1, including a 40% reduction in head office space.

The results also confirm that 111 branches will close this year amid the ongoing shift by customers towards mobile and online banking, a long-term trend which accelerated during the Covid-19 crisis. A network of 452 branches will remain, providing broad coverage across the UK.