Profits at the UK arm of Santander have been hit by the money it has spent trying to cover the costs of mis-selling Payment Protection Insurance (PPI) to its customers.

The bank revealed it kept more than half a billon pounds to one side in order to counter the refunds. Ana Botin, chief executive at the lender, noted the company was struck by a £538 million ($879 million) charge, adversely affecting the bank’s financial results for the six months leading up to June. Pre-tax profits at the UK unit – which has more than 1,400 branches – fell by three per cent to £1.2 billion during the period, with levels restricted due to high regulatory costs.

It meant earnings after tax, coupled with the PPI fee – came to £300 million.

Ms Botin noted results are being impacted by costs of liquidity, low interest rates and term funding, but added: “Santander UK has delivered profit in the first six months – maintaining its strong track record of profitability and strengthening its balance sheet.”

“BrunelFranklin.com has helped thousands of people who have been victims of PPI mis-selling. If you have grounds for a refund, it will be pursued by our dedicated staff, experienced in the complexities involved to give you the very best chance of securing the maximum payout.”

Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51