Half-year profits at Santander's UK business have plunged by more than a third on the back of pressure on its mortgage book and investment costs.
The Spanish-owned lender saw its profits continue to be weighed down by intense pressure in the UK mortgage market, which saw it post a 35% profit slump in the first quarter.
The UK business was also under pressure from restructuring costs after the group announced earlier this year that it is to axe 140 branches across the UK, putting more than 1,200 jobs at risk.
Nathan Bostock, chief executive officer of Santander UK, said: "The results for the first half of the year reflect the start of a multi-year investment in our strategic transformation programme, a number of external factors and our prudent approach to risk.
"Our business remains strong, with the further enhancement of our mortgage franchise and increases in our retail and corporate deposits, both important customer loyalty drivers.
"These are uncertain times, and our profitability has been impacted by a fall in income due to the highly competitive UK mortgage market."
