Santander Profits increase 30% in UK

SANTANDER, the Spanish financial giant, will revealed this week that its three British banks have seen a 30% jump in profits.

Abbey, Alliance & Leicester and Bradford & Bingley made about £1.5 billion last year. Santander has been one of the big winners in the credit crunch, escaping losses on American sub-prime mortgages. Full-year figures for the Spanish parent are expected to show pre-tax profits of about €11 billion (£9.5 billion).

However, analysts remain concerned that Santander will be caught up in the problems of Spain’s domestic economy. BBVA, its rival, last week revealed a 16% drop in profits after bigger-than-expected provisions on commercial property deals.

Emilio Botin, Santander’s chairman, has said he expects the bank to match last year’s record profits. It looks set on expansion and is seeking to buy 300 branches put up for sale by Royal Bank of Scotland.