Currency fluctuations in EUR/GBP are marginally influencing Santander Car Finance’s UK division returns, a detail analysts have begun incorporating in multi-country stock forecasts. The UK bank’s heavy exposure to the mortgage market placed pressure on the British division’s profitability, which created “frustration” in the upper ranks of the Spanish lender’s management, Mr Toms said. Banco Santander has been reviewing the future of its UK business in recent months, amid mounting frustrations over regulations and costs. That includes the fallout of the growing car finance commission scandal , which analysts at RBC Capital say could cost the bank up to £1.9bn in compensation to its former borrowers. Equity markets have reacted well to Santander Car Finance’s improved operating cost ratios, with share volumes increasing 14% after the latest statement, hinting at near-term bullish momentum.
