Santander warns profits to fall for next two years

Spanish banking giant Santander has warned investors profits at the bank are likely to fall in 2012 and 2013 as the bank pumps millions into improving customer service levels.

Speaking at an investor presentation, UK chief executive Ana Botin, said returns were expected to fall after she committed the group to invest almost £500m on improving customer service levels, the Telegraph reported. Ms Botín, who has led the business since last December, warned Santander UK, which has delayed plans to list its shares on the London Stock Exchange, would be forced to contend with "a combination of strong headwinds", with low GDP growth and regulatory costs also hurting margins. Speaking at the investor day, she was quoted as saying: "We believe the cumulative effect...