Abbey mortgage market share pushes up Santander's profits

29 October 2009 / by Rachael Stiles

Abbey increased its profits by 37 per cent in the first nine months of 2009 due to the Santander-owned bank increasing its share of the UK mortgage market.

Abbey mortgages now account for almost a fifth of all UK home loans, while its new mortgage business – £5.1billion – represents more than half of the market, and gross new mortgage lending is up 18 per cent.

The group's third quarter figures show that Abbey mortgage lending rose two per cent in the third quarter, bringing its portfolio to £164,300million.

Following its purchase of Alliance & Leicester, Santander's savings deposits in the UK rose 46 per cent in the third quarter; not including Alliance & Leicester's savings accounts, there was a 19 per cent rise in deposits.

More than 800,000 Abbey current accounts were opened in the first nine months of 2009, putting it on track to meet its target of one million new accounts by the end of the year.

Since the Spanish banking group bought Abbey in a distressed sale five year's ago, the UK has become Santander's third most important region.

While many of its rivals have suffered from huge losses amid the tumultuous financial conditions of the past several years, Santander has managed to emerge relatively unscathed. 

Santander has more shareholders than any other international financial group and also boasts the largest branch network.

© Fair Investment Company Ltd