Santander UK has reported gross residential mortgage lending of £5.7bn for the first quarter of the year, compared to £3.3bn for the same period last year.
Mortgage applications were up 70% on the first quarter last year.
The bank also announced corporate lending was up 12%. Commercial banking customer loans increased by £2.5bn over the last 12 months and now account for 12% of total customer loans. Meanwhile, £1.1bn of new facilities were extended to SMEs.
Ana Botín, CEO of Santander UK, said: “This has been another strong quarter for Santander UK, as we successfully execute our transformation to a bank that is simple, personal and fair for all our customers. We reached 2.7 million customers in our 1|2|3 World, whilst we maintained our position as the leading UK bank for current account switchers. Since the start of 2013 current account balances have grown by around £1 billion per month to now stand at £31.7bn, and customer satisfaction continues to improve significantly.
“UK homeowners, families and businesses continued to benefit from our support in the first quarter of 2014. We provided £5.7 billion of mortgages to UK households, including £1.0 billion to first time buyers and £62 million as part of the Help to Buy scheme. Our lending to UK corporates increased to £22.9 billion, up 12% from a year ago, with £1.1 billion of gross new facilities to SMEs.
“Our net interest income rose for the ninth consecutive quarter, with Banking NIM reaching 1.79% up from 1.45% a year ago, but this is set to stabilise as pressure on mortgage margins continues. Our balance sheet remains strong with a CET 1 capital ratio of 11.6%.
“We will continue to invest in the transformation of our franchise with a sustained programme of technology, digital, product and customer service improvements. This will enable us to continue to support our customers against a backdrop of an increasingly solid UK economic recovery, as they act with renewed confidence and translate their plans into reality.”
