By Karim Hammam
Santander UK reported a 6% decline in pre-tax profit for the first nine months of 2026, despite a boost from its acquisition of TSB.
Nine-month profit decline
Pre-tax profit fell to £1.2 billion from £1.28 billion a year earlier, mainly due to a first-quarter charge for historic motor finance commission payments and higher restructuring costs.
Third-quarter surge
Profit for the July-to-September quarter jumped to £630 million from £372 million a year ago, helped by TSB's contribution of £96 million since the acquisition completed in May.
TSB integration and cost targets
Nearly 1,000 TSB staff transferred to Santander at the start of October, and the bank expects to achieve £400 million in cost synergies by the end of 2028. Chief executive Mahesh Aditya said further efficiency savings are targeted this year through simplification and automation.
Motor finance provision
Santander has set aside £616 million for potential compensation costs related to mis-sold car loans, though the industry-wide scheme is currently delayed by legal challenges.
