The Spanish banking giant, Santander Bank has announced that it will add more than £30 million pounds to the money it has set aside for the mis-selling of Payment Protection Insurance in the UK.
The addition of these funds by the bank, bring the total amount of money that Santander has placed at it’s disposal to compensate it’s customers for mis-sold PPI to a sum of nearly £1.7 billion.
The bank also announced that due to plunging interest rates set by the Bank Of England – consumer interest in it’s 123 current bank account product, which offered a high interest rate to it’s users – had stalled due to the slashing on interest rates by the government.
At the UK arm, reported profits were 1 per cent lower at £525m for the first three months of 2017 as it took a further £32m charge to cover claims for payment protection insurance (PPI) compensation.
The bank said that net mortgage lending fell by £400m after withdrawing some of its most competitive rates at the end of last year.
Chief executive Nathan Bostock, the former finance chief at Royal Bank of Scotland, said the group was bracing for a tougher 2017 as Brexit-fuelled inflation from the weak pound hits consumer spending power. He added: “Looking ahead, we anticipate a changeable and potentially more challenging macro environment.”