![\"Santander](\"https:\/\/www.europesays.com\/spain\/wp-content\/uploads\/2026\/06\/5c72ce29dacc086201f6cff2a46b7f0d.jpeg\")
Santander UK has revealed a hike in annual profits despite putting by another \u00a3183 million to cover costs of the motor finance mis-selling scandal and warned over further cost cutting over the year ahead (Alamy\/PA) (Alamy\/PA) <\/p>\n Santander UK has revealed a hike in annual profits despite putting by another \u00a3183 million to cover costs of the motor finance mis-selling scandal and warned over further cost cutting over the year ahead (Alamy\/PA) (Alamy\/PA) <\/p>\n
Santander UK<\/a> has revealed a hike in annual profits despite putting by another \u00a3183 million to cover costs of the motor finance mis-selling scandal and warned over cost-cutting in the year ahead.<\/p>\n The Spanish-owned lending giant reported a 14% rise in pre-tax profits to \u00a31.51 billion for 2025.<\/p>\n It added the additional provision for motor finance compensation and costs, on top of \u00a3295 million for the saga in 2024, having earlier cancelled third quarter results to assess the impact of the Financial Conduct Authority\u2019s redress scheme.<\/p>\n But it cautioned \u201cthere continue to be significant uncertainties as to the nature, extent and timing of redress payments\u201d.<\/p>\n \u201cThe ultimate financial impact could be materially higher or lower than the amount provided,\u201d the bank said.<\/p>\n In full-year results it also set the scene for more cost-cutting in 2026, less than a week after it revealed plans to shut another 44 branches, putting nearly 300 jobs at risk.<\/p>\n Santander<\/a> said it expects further cost efficiencies in 2026 \u201cdriven by simplification and automation of our business\u201d.<\/p>\n Last week\u2019s branch closures will leave it with 244 full branches, although it will add more through the deal to take over smaller rival TSB<\/a>.<\/p>\n It said it expects to complete the \u00a32.65 billion TSB deal in the first half of 2026, having previously guided for the first quarter.<\/p>\n Outgoing chief executive Mike Regnier said: \u201cThe most significant change in 2026 is expected to be the acquisition of TSB, for which we hope to receive regulatory approval in the first half of the year.<\/p>\n \u201cThis landmark acquisition will create the UK\u2019s third-largest bank by personal current account balances, enhancing the profitability of Santander UK and creating stronger competition and choice for customers.\u201d<\/p>\n The group announced last week that Mahesh Aditya, who is currently group chief risk officer at Banco Santander, will become chief executive of the UK bank on March 1, replacing Mr Regnier ahead of the TSB deal merger.<\/p>\n (Santander\/PA) (Santander) <\/p>\n