Santander UK considers withdrawal from the British market

According to a report by the Financial Times, the British subsidiary of the Spanish financial services group Banco Santander, known as Santander UK, is considering a strategic reassessment of its market presence in the United Kingdom. These considerations could lead to a withdrawal from the UK market. The decision marks a turning point, twenty years after acquiring Abbey National, and comes at a time when the Spanish banking giant is struggling with low returns and legal challenges from its UK operations. Additionally, Santander UK has benefited less from rising interest rates than other markets. A former manager mentioned that the sale of the ringfenced bank has always been an option for Chief Executive Officer Ana Botín. However, there is no concrete offer or announcement yet, as the review is still in an early stage. The entry into the UK retail banking market began in 2004 with the acquisition of Abbey National and was expanded through further acquisitions during the financial crisis. In 2010, it was rebranded to the current Santander UK. As part of the review, the bank is focusing on growth regions such as the U.S. market and expanding its engagement in corporate and investment banking. Despite a potential withdrawal from retail and commercial banking, Santander is expected to maintain its corporate and investment banking activities in London. The bank is currently reducing its workforce in the UK and announced a plan in October to cut 1,400 jobs as part of a cost optimization initiative called "Project Nike." Santander UK currently employs about 21,000 staff and serves 14 million customers. While pre-tax profits have declined, the company's total assets stand at £275 billion (as of September). Nonetheless, Santander emphasized that the UK remains a core market and there has been no change in this regard.