Santander reports a massive £532m profits before tax despite its £82m loss in the final quarter of 2015. Part of its losses were due to payment protection insurance refunds during the last quarter of 2015.
First quarter results published last April showed Santander had profited before its tax jumped 13 per cent against the same period the previous year. For its full-year results, Santander had jumped in profits by 14 per cent.
According to Santander UK Chief Executive Nathan Bostock “I am pleased to report a solid start to 2016, underpinned by strong business flows and lower loan loss provisions.”
Santander is one of the UK “Big Five” banks with a huge number of mis-sold policies from the 90s. Santander had gained a total of £2 billion for its PPI bill.
The bank has set aside more than £500m quarterly because of payment protection insurance. The bank is one of the lesser-mis-selling banks.
Lloyds leads with a £16 billion PPI refund bill. Due to delays and its complicated PPI claims procedure, Lloyds had gained tremendous administrative costs.
The total UK PPI bill is at £32 billion. Analysts estimate a £5 to £7 billion addition to the PPI bill upon the start of the FCA’s advertising campaign to resolve payment protection insurance.