Spain’s Santander bank has announced that it will increase the amount of money it has set aside, to compensation individuals who were mis-sold payment protection insurance by the bank. It is expected to add nearly £115 million to it’s stockpile for potential future ppi claims. This move by Santander, makes the bank the first in 2017 to announce additional funds will be added to it provision.
In October 2016, Santander revealed that it had placed £30 million into its PPI fund, which brings the total amount secured by the bank in the last twelve months for ppi compensation to nearly £150 million.
In 2015, Santander had set-aside nearly £500 million for ppi claims.
The BBC reported that the bank also experienced downturns in other sectors, but the bank was sounding positive words about it’s future prospects.
But in the UK – which accounts for a fifth of the bank’s profits – earnings plunged 14.7% to 1.68bn euros, although excluding currency movements, the drop was just 4%.
Sterling has fallen to a near three-decade low since the UK voted to quit the EU last year.
The bank also saw a sharp slowdown in the number of new customers signing up to its popular 123 current account after it halved the top interest rate in November.
It added 483,000 new 123 customers in 2016, down from about a million in 2015.
The bank also put aside another £114m in the fourth quarter for compensation linked to the payment protection insurance (PPI) mis-selling scandal.
However, Santander UK told the BBC it had increased lending and was supporting the UK economy “to a greater extent now than it was in 2015”.
“On an underlying basis, our statutory performance has actually improved,” it added.
Looking ahead, it said it expected to see a “changeable and more challenging” trading environment this year.