Santander is cutting more than 1,400 jobs across its UK division this year to reduce costs and streamline operations.
The announcement came from Hector Grisi, Santander’s CEO, who confirmed 1,425 jobs would be affected as the bank continues to automate processes.
These layoffs are nearly complete and are expected to conclude by the end of the year. As of September, Santander’s UK workforce was recorded at 21,812 employees.
Financial Report Delay Linked to Car Finance Ruling
In an unusual move, Santander UK postponed its financial report release. It cited the need to assess the impact of a court ruling affecting commission on car finance deals.
The Court of Appeal recently sided with consumers in a case involving undisclosed commissions on car loans. The ruling demands that lenders and dealers receiving commissions must ensure full transparency to customers.
Three people filed complaints, claiming they were unaware their car dealer had secured higher commission by inflating interest rates on their finance agreements.
The judgment has raised compliance standards for motor finance commission disclosures, potentially triggering a wave of similar complaints across the industry.
Santander disagreed with the court’s decision, stating it established a stricter standard than previously interpreted under UK law. The bank noted that it was still assessing the potential financial exposure arising from this decision.
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Profit Boost for Parent Company, but UK Division Holds Back
While Santander UK withheld its financial report, the broader Santander Group announced a strong third-quarter performance, with pre-tax profits reaching €4.9 billion (£4.1 billion) between July and September—a rise of 11% from the same period last year.
Executive Chair Ana Botin said:
“In an increasingly volatile geopolitical environment, we are confident that we will maintain this strong momentum throughout the rest of the year, delivering on all our targets, and continuing into 2025.
Santander UK did not specify when it plans to release its financial results, leaving uncertainty for stakeholders and analysts awaiting a clearer picture of the bank’s UK performance.
What’s Next for Santander and the UK Banking Sector?
The court ruling could lead to sweeping changes across the motor finance industry, increasing regulatory pressure on lenders to prioritize transparency. This shift may see heightened scrutiny and potentially more consumer-driven claims in the UK.
As Santander and its competitor Lloyds assess their potential liabilities, the case underscores the rising demand for ethical practices in the banking sector—marking a critical moment for UK financial institutions navigating both economic challenges and regulatory changes.
