Santander UK employees are preparing for further job losses after the bank reported a 38% decline in full-year profits and confirmed plans for a cost-cutting programme. The Madrid-based Banco Santander's earnings report, released on Wednesday, revealed that the UK was its only region to suffer a profit slump in 2024, aside from a South American arm covering Peru, Uruguay and Colombia.
Santander UK's pre-tax profits fell by more than a third to £1.3bn, partly due to the £295m set aside to cover potential compensation from the car loan commission scandal last November. The bank also attributed rising costs to larger bonuses for staff and executives, with details expected in an annual report due later this month.
The bank is now exploring further “simplification and automation” to “help drive cost efficiencies in 2025”, with job cuts understood to be part of the programme. In 2024, Santander UK cut 1,800 jobs, surpassing its target of 1,400, reducing its headcount from 19,800 to 18,000. It remains unclear whether there are specific job loss targets for 2025.
The news has fuelled speculation about a potential sale of the UK operation. Last month, it emerged that bosses were reviewing the future of the British business amid frustrations over regulation and costs. Santander's executive chair, Ana Botín, has since stated that the UK is a “core market”, but speculation increased after the surprise resignation of UK chair William Vereker, who denied reports of a rift with Botín.
Finding a buyer may be difficult until the costs of the motor finance commission scandal are resolved. A landmark court ruling in October determined that paying a “secret” commission to car dealers without disclosure was unlawful. Barring a Supreme Court overturn in April, lenders including Santander UK could face a combined bill of £44bn. Chancellor Rachel Reeves has urged the Supreme Court to avoid handing a “windfall” to affected borrowers.
