Santander’s UK division has £8bn increase in current account deposits
Interesting news coming out of the UK, where the UK division of Spanish-owned Santander bank says they’ve had an £8bn increase in current account deposits in the last year. While they put it down to using celebrities to ‘endorse’ Santander’s services, customers are saying it’s more likely Santander is offering a higher interest rate for 123 current accounts than just about any other bank.
Have Santander increased their profits though?
The higher interest rate the Spanish-owned bank is offering, however, may also be responsible for the other news coming from Santander. The news that, although there has been an £8bn increase in current account deposits in the UK, the bank’s profits there have actually fallen by more than 20 percent year on year.
Meaning they’ve sacrificed short-term profits to gain more customers. In the long-run, of course, that could easily be the reverse.
Read this The Guardian article for more about the increase in Santander’s UK deposits, but it’s the comments on the article I found the most interesting.