Santander in 10% leap but is dragged by Carillion hit

Santander saw profits jump at the start of the year but its exposure to the collapse of Carillion hit returns in the UK.

The Spanish lender with a big UK high street presence saw profits up 10% to more than €2 billion (£1.75 billion) in the first quarter.

In the UK profit fell by £111 million to £414 million, largely due to higher losses on bad credit of £60 million, up by £13 million. That was partly driven by the liquidation of Carillion in January.

Nathan Bostock, the former RBS man who is UK boss of Santander, was linked to his former bank’s mistreatment of small customers by Liberal Democrat leader Sir Vince Cable earlier this year.

Cable said he should have known that policies intended to drive small firms bust were being pursued.

On Tuesday Bostock acknowledged “ongoing competitive pressures” and said regulation costs were rising.

Santander, led by Ana Botin and the biggest bank in Europe by market value, makes more than a quarter of its profits in Brazil.