Santander denies reports on UK retail business sale

Posted by author February 17, 2025 Bussiness

The UK is said to be one of Santander’s ten strategic markets, which also include Mexico, Brazil, and Spain. Credit: JRomero04/Shutterstock.

Spanish bank Banco Santander has refuted claims of its UK retail business being on the market, despite reports of potential sale discussions with British bank NatWest.

Last month, the Financial Times reported that Santander UK, a unit of Banco Santander, is weighing a strategic review that may lead to its departure from the UK.

However, now the publication cited a Santander spokesperson, who countered claims of a potential exit after two decades on the British high street and confirmed that the UK arm is “not for sale”.

According to the spokesperson, the UK unit continues to be a “core part” of the bank’s global diversified business model.

An insider noted that Santander had not proactively sought buyers for its UK operations.

For NatWest, the potential acquisition aligns with its strategic focus on domestic growth.

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Under CEO Paul Thwaite, NatWest pursued expansion through acquisitions, including the purchase of Sainsbury’s banking business and a mortgage portfolio from Metro Bank.

The bank recently reported an annual profit of £6.2bn for the year ending 31 December 2024.

This performance has been attributed to progress in its growth strategy, productivity improvements, and strategic capital management.

The dialogue between Santander and NatWest has sparked speculation about the Spanish bank’s commitment to competing in the UK’s challenging mortgage market.

A spokesperson for NatWest Group declined to comment on the speculation, stating: “We do not comment on speculation.”

The UK is said to be one of Santander’s ten strategic markets, which also include Mexico, Brazil, and Spain.

Earlier this year, Santander CEO Ana Botín emphasised the importance of the UK market to the bank’s future plans.

In January, Reuters reported that Barclays approached Santander regarding acquisition of its UK business, but no deal materialised.

Last week, Santander’s UK division posted a net profit of €1.3bn for 2024, marking a 15% decline from 2023.

Its return on tangible equity—a key measure of bank profitability—also lagged behind Santander’s other major markets.