Santander warns of 'uncertain' outlook going in to of next financial period

Mike Regnier, Chief Executive Officer, said: “The global economic environment and rising cost of living have presented challenges for many of our customers and clients.

“Our focus has been to provide targeted and practical support, including advice on household budgeting and a toolkit for SMEs to help them through the ongoing inflationary pressures.”

The lender noted that it was setting aside further funds for losses in loans, as it prepares for customers to fall into arrears.

This comes as the Spanish-owned bank announced its full-year results for 2022.

Its results show that profit was up two per cent before tax, driven by increased income and lower costs, partly offset by higher credit charges.

The bank also increased customer deposits by £4.3bn.

Mr Regnier added: “The end of 2022 saw a marked slowdown in mortgage lending and, with an uncertain economic outlook for 2023, we will continue to focus on a prudent approach to risk while we help people and businesses prosper.

“Against this backdrop, I am extremely proud that we have delivered a strong set of results with an increase in profit underpinned by net mortgage lending of £9.8bn.

“Throughout the year our people have been helping our customers, many of whom are experiencing very challenging times.

"It is important that we also support our people, and we were pleased to award two pay rises during the year for the majority of our staff.”