The global head of Banco Santander has poured cold water on reports that it is looking for a buyer for its UK bank by saying “it is not for sale”.
The comments by Banco Santander group executive chair Ana Botin come after multiple reports emerged last month that the Spanish lender is in the early stages of exploring several strategic options, one of which is exiting the UK.
The parent lender is understood to be unhappy with onerous ringfencing rules brought in after the 2008 financial crisis, which require UK high street lenders to keep these units separate from other investment operations.
Also, last month Santander UK said that its chair William Vereker will step down later this year.
But Botin said: “The UK is not for sale. We love the UK and the UK will remain a core market.”
Her comments came in an interview with the Sunday Times yesterday.
Botin added: “We have a strategy review every year. The UK is profitable, the UK provides diversification to us because it’s a different currency, it’s a low-risk balance sheet and I’m very happy with how the UK is making progress.”
Santander UK holds 14 million customers and employs 20,000 staff across just under 450 branches. Its mortgage loan book stood at £170.8bn at the end of June.
Banco Santander bought Abbey National in 2004, making it a presence in the UK lending market.
Barclays is understood to have previously approached Santander about a possible offer for the UK business but these talks did not lead to a sale because the parties could not agree a price, according to Reuters citing a person familiar with the talks.
