Major Spanish bank Banco Santander (BME: SAN) is allegedly reconsidering its position in the United Kingdom after two decades as a major player on Britain's high street, the Financial Times reports.
Santander joined the U.K. retail banking sector in 2004 by acquiring the former building society Abbey National.
Following the global financial crisis, it became one of the leading lenders in Britain by merging Abbey National with Alliance & Leicester and parts of Bradford & Bingley to become Santander U.K. in 2010.
The bank is reportedly considering various strategic alternatives, including the possibility of withdrawing from the U.K. market altogether to focus on larger growth opportunities such as the U.S. market.
The Financial Times noted that no decisions or announcements are imminent as a source revealed reviews were in early development.
They also noted that Santander responded to the allegations saying, “The U.K. is a core market for Santander and this has not changed.”
Anonymous sources close to the bank told the Financial Times that Santander's review is part of a regular assessment of its major businesses.
The bank’s place in the U.K. has been a point of internal frustration due to high costs and fewer benefits than in the local Spanish market, the former employee told The Financial Times.
Therefore it does not seem unlikely that the bank would be considering alternatives.
This follows an announcement in October 2024 by Santander CEO Hector Grisi who confirmed that the bank was cutting more than 1,425 jobs across its U.K. business as it automated operations in a bid to reduce costs.
The Guardian reported that the company had 21,812 workers in the U.K. at the end of September, according to its latest financial report.
Santander UK reported half yearly profit of £813 million before tax in 2024 down from £1,122 billion during the same period in 2023.
Net interest income fell by 11% due to higher customer deposit costs.
The bank reported £264.2 billion in assets at the end of June 2024 down from £275.4 in December 2023.
At the time of writing, the stock price of Banco Santander was EUR4.80, with a market cap of EUR72.27 billion.
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