Abbey Increases Its Share of UK Mortgage Market to 20%

Profits for the first three quarters of 2009 of the Abbey bank, owned by the Spanish banking group Santander, grew significantly as the lender increased its share of the UK mortgage market. Profits of the UK division of Santander Group, which also owns 2 other British banks, Alliance & Leicester and Bradford & Bingley, increased to £1.16 billion, up from £849 million by 37%. In the nine months of 2009, the bank took 20% of the British mortgage market, which is 7% higher than traditionally. At the same time, the share of new lender’s mortgages, amounting to £5.1 billion represents approximately 50% of the UK mortgage market. Abbey, which is to be renamed into Santander next year, was acquired by the Spanish banking group 5 years ago at a bargain price. Alliance & Leicester and Bradford & Bingley were added to the Santander Group in the same way last year. The bank considers UK the third most important region, and looks into purchase of additional banking assets. Meanwhile, profits of the banking group as a whole amounted to £6.12 billion in the first 3 quarters of this year with the third’s quarter profits remaining at the same level as a year ago. According to the statement of Santander’s management, the bank managed to generate high profits, improve its financial results, and strengthen its balance sheet despite the difficulties that the sector of international, as well as national, banking faces at the moment. It has also been noted that the revealed figures demonstrate the advantages of geographical business diversification, even though the lender described British economy as fragile. Let us remind that Santander Group managed to live through the economic downturn without asking for state aid and losing its reputation.