BANK Santander says a rise in new mortgage lending helped drive up UK profits.

The company, which operates more than 900 branches across the country, said profits stood at £1.4bn for the year to December 31.

It added 276,000 current account customers switched to the business in the last year.

The bank said it had 14 million customers in the period, with loans of £190.7bn and deposits of £152.4bn.

Total customer funds stood at £159.2bn.

The bank uses sporting stars to market its products, such as its 1|2|3 range, including golfer Rory Mcilroy, Olympic gold-medallist Jessica Ennis-Hill, and Formula One driver Jenson Button.

Nathan Bostock, who took over from Ana Botin as UK chief executive in September, said it had enjoyed strong momentum, helped by 1|2|3, which offer savers benefits including cashback and interest and preferential rates.

He said: “The UK economy improved during 2014 and will, we believe, continue to be supportive of our business in 2015.

“We attracted a further 1.2 million new customers to our 1|2|3 World, and now have 3.6 million.”

Santander said the improved conditions meant losses on loans and advances were 46 per cent lower last year, although it increased its provision for the mis-selling of payment protection insurance by another £30m in the final quarter.

The additional hit comes after a review indicated claims are expected to continue for longer than originally anticipated.

As well as new mortgage lending of £26.3bn in the year, Santander said it grew lending to UK companies by a net £1.8bn to £23.9bn.

It also said it helped 40,300 first-time buyers and 8,100 Help to Buy customers in the year.

The bank’s Spanish parent Banco Santander revealed improved fortunes with full-year profits up by 23 per cent to £7.35bn.

As well as backing Mcilroy, Ennis-Hill and Button, Santander also sponsors the Ferrari Formula One team.