Santander profits hit by PPI

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The UK arm of Santander has set aside more than £500m to cover the costs of mis-selling payment-protection insurance (PPI) to its customers.

Its chief executive Ana Botin said the £538m charge hit the bank's financial results in the six months to June, but still hailed its "strong track record of profitability".

The British arm of the Spanish banking giant saw pre-tax profits dip 3 per cent to £1.2bn in the six months to June as higher regulatory costs dented earnings.

Profits after tax and the PPI charge were £300m.