January 31, 2018 / 7:26 AM / 25 days ago

BRIEF-Santander UK loan losses up due to Carillion collapse

Jan 31 (Reuters) - Santander Uk PLC:

* ‍PROFIT BEFORE TAX OF £1,814M, DOWN 5% YEAR-ON-YEAR; ADJUSTED PROFIT BEFORE TAX 2 AT £1,952M, DOWN 4% YEAR-ON-YEAR​

* ‍NET MORTGAGE LENDING OF £0.6BN, WITH A FOCUS ON CUSTOMER SERVICE AND RETENTION AND MANAGEMENT PRICING ACTIONS IN A COMPETITIVE ENVIRONMENT.​

* ‍NET LENDING TO UK COMPANIES DOWN £(0.1)BN. STRONG LENDING GROWTH TO OTHER CORPORATE BUSINESSES, UP 4%, WAS REVERSED BY REDUCTION IN COMMERCIAL REAL ESTATE (CRE).​

* ‍BANKING NIM OF 1.90%, UP 11BPS, DUE TO LIABILITY MARGIN IMPROVEMENT, PARTIALLY OFFSET BY NEW LENDING MARGIN PRESSURE​

* ‍NON-INTEREST INCOME IMPACTED BY ABSENCE OF £119M GAIN ON SALE OF VISA EUROPE LIMITED IN FY16 AND MARK-TO-MARKET MOVEMENTS ON ECONOMIC HEDGES AND HEDGE INEFFICIENCIES IN FY17.​

* ‍OPERATING EXPENSES UP 4%, WITH HIGHER REGULATORY, RISK AND CONTROL COSTS OFFSETTING OPERATIONAL AND DIGITAL EFFICIENCIES.​

* ‍IMPAIRMENT LOSSES ON LOANS AND ADVANCES INCREASED TO £203M, PRIMARILY RELATING TO CARILLION PLC EXPOSURES.​

* CEO SAYS ‍PROFITABILITY WAS IMPACTED BY LOSSES INCURRED ON OUR EXPOSURE TO CARILLION, WHICH OFFSET OTHERWISE STRONG GROWTH. WE ARE WORKING CLOSELY TO SUPPORT CUSTOMERS WHO HAVE SUFFERED FROM THEIR COLLAPSE.​ Source text for Eikon: Further company coverage: (Reporting by Emma Rumney)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below