Santander is set to cut 1,425 jobs across its UK operations by the end of 2024, largely due to increased automation, confirmed CEO Hector Grisi on Tuesday. This restructuring affects nearly 7% of its UK workforce, which numbered 21,812 employees as of September.
The bank’s UK branch postponed the release of its financial results to assess the implications of a recent court ruling on car finance commissions. The UK Court of Appeal recently ruled in favor of consumers who argued they were unaware that higher interest rates resulted in higher commissions for dealers. This decision establishes a new standard for transparency in car finance arrangements, which could impact Santander’s operations in that sector.
Santander UK stated it disagreed with the court’s ruling, arguing that it raises the standards for disclosing commission structures beyond what was previously expected. While the full financial impact remains uncertain, the bank acknowledged the need to evaluate potential liabilities from the judgment. Rival bank Lloyds is also assessing the implications of the court’s decision for its own car finance products.
Meanwhile, Santander Group’s overall financial performance remains strong, with the bank posting an 11% increase in pre-tax profit, reaching €4.9 billion (£4.1 billion) in Q3.
