Santander boss gives major update on UK future amid fears the major bank with 14million customers will quit Britain
THE head of Santander has given a major update on the firm’s future amid fears the bank would be quitting the UK.
Recent reports suggested that the Spanish bank was reviewing its presence on the British high street after shedding hundreds of jobs over the past year.
The bank employs around 20,000 people across 444 branches, while holding £200billion in customer lending.
And late last year Santander said it was looking to cut 1,400 jobs.
But Santander’s boss Ana Botin has now insisted the bank will remain operating in the UK.
The 64-year-old told the The Sunday Times: “The UK is not for sale.
“We love the UK and the UK will remain a core market. We have a strategy review every year.
“The UK is profitable, the UK provides diversification to us because it’s a different currency, it’s a low-risk balance sheet and I’m very happy with how the UK is making progress.”
It comes after reports claimed Santander was considering a number of options after the UK arm of the bank saw lower returns than overseas markets.
Speculation intensified last week when William Vereker, the former investment banker who chairs the UK operations, announced his intention to leave this year.
If executives opt to leave, the Spanish banking giant would look for a buyer for operations here, reports the Financial Times.
The proposal is said to have been partly triggered by frustration over costly UK rules introduced thanks to the financial crisis, according to the FT.
This led to lower returns than in other markets, while the bank has also set aside £295million to cover costs from the car finance scandal.
An estimated £13billion could be owed in compensation payouts with experts fearing this figure could actually double.
The FT previously reported that one ex-Santander executive said it had “always been a possibility” that executive chair Ana Botín would flog the bank as a result of so-called ringfencing rules.
However, Botin stressed that the business is not for sale and acquisitions are not on the cards.
She told the outlet: “We would like to grow, there are different ways of doing that.
“The one we’re focused on is organic, through leveraging our global platforms.”
A spokesperson for Santander UK said: “We remain focused on providing excellent products and services to our 14 million customers in the UK.
“The UK is a core market for Santander, and this has not changed.”
Just last month, Chancellor Rachel Reeves told industry regulators they need to help revive Britain’s floundering economy “by tearing down the regulatory barriers that hold back growth”.
She added: “I am determined to go further and faster to kickstart economic growth, which is the number one priority in our Plan for Change.
“That means generating investment, driving reform and a relentless commitment to root out waste in public spending, and today I will be pressing regulators on what more they can do to deliver growth.”
BANKING HUBS
Communities across the UK are campaigning for banking hubs – which have become a vital lifeline for towns left without a bank branch to access key services.
Banks have closed more than 6,000 branches since 2015 as providers push customers to use online and app-based services instead.
In response, banking hubs have been created to give residents the chance to manage their money face-to-face and speak to staff from all of the major banks.
Most banking hubs are open from Monday to Friday from 9am to 5pm each week.
They are owned by Cash Access UK and are operated by the Post Office.
What services do banking hubs offer?
BANKING hubs offer a range of services to bridge the gap left by the closure of local branches.
They are operated by the Post Office and allow customers to perform routine transactions such as make deposits, withdrawals and balance enquiries.
Each hub has private booths where customers can discuss banking matters with staff from their respective banks.
Staff from different banks are available on a rotational basis, which ensures that customers have access to a wide range of banking services.
Customers can also receive advice and support on various financial products and services including mortgages, loans and savings accounts.