Santander UK has delayed the release of its third-quarter results at the last minute as it scrambles to review last week’s landmark court judgment into car finance misselling that some analysts say could cost the lender £1.1bn.
The bank was scheduled to release its latest quarterly earnings report on Tuesday morning, alongside those of its Spanish parent company, Banco Santander. The British arm, however, announced on Monday evening that it was withholding its report while it reviewed Friday’s court of appeal ruling into commission payments on car loans.
The judgment, which said it was unlawful for lenders to have paid a commission to car dealers without the borrowers’ knowledge, could influence an ongoing investigation by the Financial Conduct Authority and ultimately force lenders such as Santander to pay customers billions of pounds in compensation.
“It is not practicable to reliably estimate at this point in time the extent of any potential financial impact,” the bank said. “However, Santander UK Group Holdings plc is taking time to consider the judgment and the…
