Bank sees sharp rise in profits
Santander sets aside £43m for advice redress
Santander has set aside £43 million to compensate for investment advice following a fine imposed on the bank by regulator.
The provision was included in the bank’s figures for the first nine months of the year which showed an increase in pre-tax profits to £1.4 billion against £1bn last time.
The Spanish bank, which has grown its UK presence after acquiring Abbey National and Alliance & Leicester, was fine £12.4 million by the Financial Conduct Authority in March.
It was found guilty of investment advice failings, especially over its structured investments and range of risk-rated portfolios.
At the time the regulator said it had uncovered “serious failings” within the bank’s advice procedure and said that its approach to considering investors’ risk appetites was “inadequate”.
A Santander spokesman confirmed that the bank believed it would not need to set aside any further redress.
Commenting on the rise in profits, Nathan Bostock, chief executive, said: “I am pleased to report solid results for the first nine months of the year, with good momentum in profitability underpinned by strong flows, significantly lower provisions and growth in net interest income.”