Santander’s Group Executive Chairman Ana Botín has moved to shut down mounting speculation that the Spanish banking giant is considering selling its UK operations.
Speaking to The Sunday Times Botín made a firm declaration: “The UK is not for sale.”
The statement follows a period of intense scrutiny and speculation about Santander’s future in Britain, where it operates 444 branches and employs 18,300 staff.
The bank has become a household name, thanks in part to high-profile television campaigns fronted by Ant and Dec.
POTENTIAL EXIT
Concerns were heightened after reports in the Financial Times suggested a strategic review of the UK business was underway, fuelling fears of a potential exit from the market.
Adding to the uncertainty, William Vereker, chairman of Santander’s UK operations, announced his departure after less than five years in the role, prompting further industry chatter about the bank’s long-term commitment to Britain.
However, Botín sought to put an end to such rumours ahead of the bank’s full-year results announcement on Wednesday this week.
STRATEGY REVIEW
She told The Sunday Times: “The UK remains a core market for us.
“We have a strategy review every year. The UK is profitable, it provides diversification because it operates in a different currency, and it has a low-risk balance sheet. I’m very happy with the progress we are making in the UK.”
ACQUISITION TRAIL
The intervention comes as Santander marks 20 years since its £8.5 billion takeover of Abbey National, a move that cemented its UK presence.
The bank expanded its British footprint by acquiring Alliance & Leicester and Bradford & Bingley during the 2008 financial crisis.
However some analysts are speculating that the company could become a target for activist investors. Since Botín took charge in 2014, the bank’s share price has fallen by 30%, adding to the pressure on its leadership to deliver stronger returns.
