Spanish bank Santander has cut 1,300 jobs this year at its British arm Abbey, driving down costs at the same time as the mortgage bank is winning back mortgage lending market share.
The latest redundancies mean 5,300 jobs have been cut since Santander's £8 billion takeover of Abbey two years ago.
Santander said earlier this year up to 2,000 Abbey jobs could go this year - meaning 500 more are due to go in the next five months as part on ongoing efficiency savings.
A spokeswoman said no decision had been taken on whether further cuts would be made next year, although she added the bank was looking to increase its presence in the Midlands.
The cuts helped Abbey reduce expenses in the first half of this year by five per cent from a year ago, slashing costs as a ratio of income to 56.5 per cent from 63.5 per cent. It is aiming to bring the ratio down to the industry average of 45 to 50 per cent.
Abbey, which has just under ten per cent of UK mortgages to rank only behind HBOS said its net lending in the first half was £4.2 billion, or an 8.4 per cent market share, up from 5.8 per cent in the second half of 2005 and just 0.3 per cent a year ago.
The UK bank said bad charges rose about ten per cent from a year before, mainly due to a 30 per cent rise in retail provisions, notably on unsecured personal loans.
Abbey's net attributable profit in the six months to June 30 rose 40 per cent from a year ago to £336 million.
The firm was also benefiting from improved new business flows across most retail products, in particular mortgages, unsecured personal loans, bank account openings and direct investment sales.
Across the product range, performance has been boosted by the uplift in sales performance in the direct channels;.
Chief executive Francisco Gomez-Roldan said: "The excellent start we made to the year has continued through the second quarter. The momentum we have established in turning Abbey around is now established and we are meeting our stated targets.
"Across all of our activities, we can see Abbey improving its performance and benefiting from Santander's expertise.
"There is still a lot of work to do."