Top up to payment protection insurance provision drives Spanish bank’s UK arm to fourth quarter loss of £82m.
The UK payment protection insurance (PPI) scandal is continuing to haunt major banks after Santander set aside another £450m to pay compensation to customers who were mis-sold.
The top up to the provision – the Spanish bank’s first for a year – came as Royal Bank of Scotland added another £500m to its PPI compensation fund and drove the UK arm of Santander to a fourth quarter loss of £82m.
Wednesday’s PPI charge knocked the profits of the wider Santander group, which has major operations in its home market and Brazil,, but it is expected to be the bank’s final PPI provision. Santander has now set aside £1.5bn for PPI, though its bill is lower than rivals such as Lloyds Banking Group, which has set aside more than £13bn.