Santander UK reported an 8% drop in first-quarter pre-tax profits to £358 million, citing higher costs tied to a major overhaul of its high street network.
The bank set aside £140 million in provisions, up 69% year on year, largely to cover expenses related to the planned closure of 95 branches and reduced services at others.
Around 750 jobs are at risk as the bank shifts further toward digital banking, which it says better reflects customer behaviour. Santander is also pushing automation and simplification to drive cost savings in 2025.
Meanwhile, the bank lowered its UK growth forecast to 0.8% this year, down from 1.4% previously, citing rising geopolitical tensions and US trade uncertainty as added risks.