Major bank ‘considering quitting the UK’ after axing hundreds of jobs

Santander could exit the UK after two decades as a major player on British high streets, according to reports.

The Spanish bank’s UK businesses is said to have caused ‘frustrations’ among bosses in recent years.

Reasons include the UK’s ring-fencing rules, high costs, its independent board and interest rate differences.

In November, the bank was forced to set aside £295 million to cover the potential costs of a court ruling on car finance commission.

Bosses are considering a number of options including leaving the UK market to focus on higher-growth regions such as the US, the Financial Times reported.

At one point, Barclays was in talks to buy Santander’s UK business, according to Reuters.

The talks reportedly broke down due to disagreement over the price of the deal, and it’s unclear whether Barclays is still interested.

Santander gained a large foothold in the UK when it bought building society Abbey National in 2004.

After the 2007-2008 financial crisis, it became one of Britain’s biggest lenders by merging Abbey with Alliance & Leicester and part of Bradford & Bingley, renaming it Santander UK.

The reports come amid flagging economic performance around the country, which Labour is under increasing pressure to turn around.

International Monetary Fund forecasts estimate last year’s growth will have clocked in at 0.9%, though it’s expected to improve to 1.6% this year.

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