Santander UK plc, part of the Santander Group, is a leading financial services provider in the UK, offering a wide range of personal and commercial financial products and services.
Our success is built on a focus on retail and commercial banking. We have consistently delivered strong financial results with profits and revenues that are balanced by strict cost-management and responsible lending. This has enabled us to be one of the most efficient financial service providers in the UK(1). We are committed to building deeper personal customer relationships through increased current account primacy and customer segmentation, rewarding loyalty through a range of special deals and incentives.
We are also committed to build our presence in Small-and Medium sized Enterprises (SME) and mid-corporate lending and retail commercial banking services. This growth will serve to provide a more balanced banking business.
Looking ahead, Santander is extremely well-positioned to continue to grow, with expansion focused primarily through organic means, while assessing selected acquisition opportunities as they arise.
The combination of Santander UK plc's retail and corporate banking presence is a powerful one: with a distribution capability across our Retail branches and Corporate Business Centres; combined with a broadening commercial product range. We are organised into four main business divisions:
- Retail Banking: offers a comprehensive range of banking products and related financial services (residential mortgages, savings and banking, and other personal financial services products) to customers throughout the UK. It serves customers through the Santander UK network of branches and ATMs, as well as through telephone and internet channels. It also includes our private banking business, which offers private banking and other specialist banking services in the UK and international banking.
- Corporate Banking: provides a range of banking services principally to UK companies, with a focus for services principally to the SME and mid-corporate markets, providing a broad range of banking products including loans, bank accounts, deposits, treasury services, invoice discounts, cash transmission and asset finance.
- Markets: a financial markets business focused on providing value added financial services to financial institutions, as well as to the rest of Santander UK's business. It is structured into two main product areas: Fixed income and Equity. Fixed income covers sales and trading activity for fixed income products. Equity covers equity derivatives, property derivatives and commodities. Equity derivatives activities include the manufacture of structured products sold to both the Group and of other financial institutions who sell them on to their customers.
- Group Infrastructure: consists of Asset and Liability Management (ALM), which is also responsible for the Group capital and funding of Santander UK plc and its subsidiaries, and the Treasury asset portfolio that is being run down. ALM is responsible for managing the Group's structural balance sheet shape and strategic and tactical liquidity risk management. This includes short-term and medium term funding, covered bond and securitisation programmes. It also includes the responsibility for managing Investor Relations.
Facts and figures (at June 2013)
- More than 15 million active customers
- 37 Corporate Business Centres
- Almost 1,200 branches (including agencies)
- c. 24,000 employees
In the first half of 2013, the UK business showed consistent and tangible progress against its strategic objectives. Profits are rising, the balance sheet is strong and Santander UK is attracting new customers at an unprecedented rate. At the same time, increased SME lending and continued investment in operational capabilities have resulted in business growth ahead of expectations.
More information on Santander UK's results can be accessed in Results & Presentations, under Investors.
Santander Group - a successful history
Santander Group is a retail and commercial bank, based in Spain, with around 14,392 branches, more than any other international bank, over 187,000 employees and more than 102 million customers. Its success comes from being close to its customers, its focus on retail and commercial banking and a sensible approach to lending.
The relationship with our customers is long-standing and built on trust and confidence. In difficult times, knowing the people who you borrow from and lend to is a distinct advantage. Our customers are also spread across the world. Santander operates in ten main markets where its strategy is to have critical mass, enabling it to operate efficiently and offer its customers the best in products and services. As a bank diversified geographically as well as along business lines, Santander is not exposed to a single market or country.
Our strict and prudent risk management, together with our relentless focus on retail and commercial banking, gives the bank a low and predictable risk profile. At the close of 2012, the Group had €1.388 trillion in managed funds and posted a pre-provision profit of €23.5 billion, an increase of 2% from the previous year. This was achieved against the worst economic backdrop for several decades.
More information on the Group can be found on the Santander Group website.
Note 1: Source: Internal analysis of cost:income ratio of main UK peers(2) based on published results for December 2012.
Note 2: Peer group includes Lloyds Banking Group plc, Royal Bank of Scotland plc, Barclays plc and Nationwide Building Society. The results for Barclays plc excludes Standard Life Bank.