Santander profits climb 11% in the UK

High street banking giant Santander reported an 11% hike in UK annual profits today, but revealed the pressure of intense competition for mortgages and savings business.

The group, which has snapped up a raft of UK players such as Alliance & Leicester and Abbey in recent years, said net mortgage lending – new loans less redemptions – fell 27% in 2010, while savings deposits plunged by more than a third.