Santander UK plans more cost cuts through automation after car loan mis-selling costs drag profits down 6%

Santander UK reported a nine-month pre-tax profit of £1.2bn, with net interest income climbing 17% to £3.9bn following the completion of its TSB acquisition in April. The bank set aside a £616m provision against potential motor finance mis-selling claims, of which £179m was recognised in the first quarter. UK chief executive Mahesh Aditya pledged further savings through "simplification and automation" and the continuing TSB integration, with close to 1,000 TSB employees transferring across this month.

TSB contributed £96m to profit from May onward, though it brought £327m in operating costs and a £62m one-off credit charge.

Restructuring and specific provisions surged 269% to £495m from £134m a year earlier, as the bank launched a small redundancy programme affecting 33 staff.

Santander expects to realise around £400m in cost synergies from the TSB merger by the end of 2028.