Business

Santander's UK profits dip

THE cost of attracting savers and the Eurozone crisis sent profits at Santander's UK arm tumbling by 20 per cent during the first half of the year. Pre-tax profits in the first six months were £141 million lower year-on-year at £549m, hurt by the cost of luring deposits with high savings rates, while it also saw wholesale funding costs rise due to Europe's sovereign debt woes. The Spanish-owned bank also continued its retreat from riskier parts of the mortgage market, shrinking its home loans book by almost £11 billion year-on-year to £152.3bn. Its share of the mortgage market has now fallen to 10 per cent as it cuts back on interest-only deals.