Santander boss speaks out after growing fears of bank pulling out of UK

The Spanish banking giant's boss moved swiftly to quash recent reports suggesting the lender was considering leaving the UK market after two decades.

She blamed fee-seeking investment bankers for stirring up the rumours about Santander's possible departure.

Botin said: "You know the army of investment bankers that wants to get fees? So if they start, these kinds of people start looking at M&A, they start looking around. It's definitely not coming from us."

The strong denial comes after reports emerged that Santander was reviewing strategic options for its UK business, including a potential complete exit from the market.

Such a move would have affected 14 million customers and approximately 20,000 employees across Britain.

The bank operates 444 branches nationwide and holds £200billion in customer lending, making it one of Britain's largest lenders.

Reports had suggested the review was driven by mounting frustrations over UK regulations, including costly post-financial crisis rules requiring banks to separate their retail and investment operations.

The Spanish banking group, which first entered the UK market through its acquisition of Abbey National in 2004, was reportedly examining options to focus on regions with higher growth potential, such as the United States.

Far from expressing frustration with Britain, Botin highlighted the country's post-Brexit advantages at Davos.

"The UK has a huge opportunity. Why? Because it can move faster. The UK does not have to agree with 27 countries now," she told the World Economic Forum.

While she acknowledged regulatory challenges, her concerns extended beyond Britain's borders saying: "Let's take a pause on regulation because that is constraining growth, big time."

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The bank has consistently maintained its commitment to the UK market throughout the speculation.

A Santander spokesman reiterated: "We remain focused on providing excellent products and services to our 14 million customers in the UK."

Despite Botin's optimistic outlook, Santander has faced recent challenges in its UK operations.

In October 2024, the bank announced 1,400 job cuts across its British business as part of cost-reduction efforts.

The lender has also set aside £295million to cover potential compensation costs related to a car finance commission scandal.

This provision contributed to a significant decline in the bank's third-quarter profits, which fell to £143million from £413million in the previous quarter.

However, Santander maintains its commitment to the UK market remains unchanged.

A Santander spokesman emphasised: "The UK is a core market for Santander and this has not changed."