Over a fifth of Santander’s profits for the first half of 2015 were generated through its UK operations.
Pre-tax profits for the bank jumped to £928m and revenues were also up by five per cent.
The result has been attributed partly to the strength of the pound and an increase in UK lending, which increased by three per cent, as well as a renewed focus on lending to businesses.
However, Jose Garcia Cantera – Santander’s chief financial officer – recently made it clear that the rise in UK tax rates and the bank levy would mean that its profits will be hit in the near future, with £500m set to be lost over the course of the next few years.
Profit made in the UK easily surpassed the £700m made by the bank through its operations in Brazil, which is currently its strongest-performing market in South America.
Emerging economies including countries other than Brazil in Latin America, as well as Poland, accounted for 41 per cent of the bank’s profits, but developed markets were responsible for the remainder.
Santander has been open about the possibility of a future flotation of its UK business, though senior executives at the bank have stated that this is unlikely to occur for at least a few more years.
Santander is worth approximately £64bn and is the largest bank in Europe in terms of financial power, though it remains outside the world’s top ten largest banks, taking eleventh place.
Ana Botin, chair of Santander, said the results demonstrated the “soundness and consistency” of the bank’s business model.