Santander has been forced to deny it is planning to quit the UK market over excessive red tape.
The Spanish-owned high street bank is in the early stages of exploring several strategic options, one of which is exiting the UK, according to multiple media reports over the weekend.
The review comes as the Spanish lender contends with lower returns at its UK ringfenced business relative to other key markets, including Mexico, Brazil and its Spain home base. The group is led by executive chair Ana Botin.
The firm’s UK business holds 14 million customers and employs 20,000 staff across just under 450 branches. Its mortgage loan book stood at £170.8bn at the end of June.
An exit would come two decades after Santander bought Abbey National in 2004 to become a presence in the UK lending market.
Santander said in a short statement on Sunday: “The UK is a core market for Santander and this has not changed.”
However, Barclays had earlier approached Santander about a possible offer for the UK business but these talks did not lead to a sale because the parties could not agree a price, said Reuters citing a person familiar with the talks.