Spanish-owned lender Abbey today reported a 37% jump in profits after it cornered an increased share of the UK mortgage market.

Abbey, which is owned by Santander and includes Alliance & Leicester and Bradford & Bingley, said profits leapt from £849 million to £1.16 billion in the first nine months of the year.

It claimed nearly a fifth of the shrunken UK mortgage market between January and September as it filled the gap left by struggling rivals.

The bank was responsible for 18% of gross mortgage lending over the nine months, up from 14.1% in the same period of 2008, although the value of loans issued fell from £30.1 billion to £19 billion as the market contracted.

Abbey, which was bought by Santander five years ago, benefited from the addition of A&L and the good parts of B&B that the Spaniards rescued from collapse last year during the banking crisis.

The impressive performance by Abbey, which will see its name changed to Santander in 2010, came as the parent company reported a 3% slide in profits to €6.74 billion (£6.12 billion).

More than 800,000 new bank accounts were opened at Abbey in the first nine months of the year putting it on target to open more than one million in 2009.

António Horta-Osório, chief executive of Abbey, said the business is now seen as "a safe and attractive home" for UK savers.