Santander considers a potential exit from the UK market

Santander sign on a building.
Credit: chrisdorney / Shutterstock.com

Spanish bank Santander is reportedly evaluating its UK operations as part of a routine strategic review, according to an unnamed source.

Reuters reported that a person close to the bank suggested the review could lead to Santander scaling back its business in Britain. However, official comments from the bank are yet to support this statement. 

Reacting to these rumours on Sunday, Santander said: “The UK is a core market for Santander and this has not changed.”

This isn’t the first time speculation about a Santander UK exit has emerged. Last year, Barclays reportedly approached Santander with an offer to purchase its UK operations. According to a second source, the talks did not progress due to a disagreement on price.

Santander made its debut on UK high streets in 2004 with the acquisition of building society Abbey National. Nearly two decades later, the Spanish-based bank has become a key player in the sector, employing around 20,000 people and operating 444 branches nationwide.

Currently, Santander operates in 10 global markets across Europe and the Americas, including its home market of Spain, the UK, the US, Brazil and Mexico.

The bank is believed to be considering leaving the UK to focus on higher-growth regions, such as the US, though no deal or announcement is imminent, according to the Financial Times.

This is reinforced by Santander’s recent focus on expanding its core banking operations in the US. In October, the bank introduced its Openbank platform in the US, extending its branch network across North America.

The following month, Santander launched Openbank in Mexico, with Global CEO Petri Nikkila describing the country as a “market with great potential.”

Payment Expert has approached Santander and Barclays for comment.