Spanish lender Banco Santander has refuted claims that its UK retail business is on the market, after reports of potential sale discussions with British bank NatWest.
Last month, Financial Times reported that Santander UK, a unit of Banco Santander, is weighing a strategic review that may lead to its departure from the UK.
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The publication recently also reported on sale talks between Santander and NatWest, stating that early-stage discussions occurred last year, but interest remains from both companies in a potential deal.
However, a Santander spokesperson has countered claims of a potential exit after two decades on the British high street, confirming to Reuters that the UK arm is “not for sale”.
According to the spokesperson, the UK unit continues to be a “core part” of the bank’s global diversified business model, stressing that the model had “significant potential upside for years to come, including in the UK.”
For NatWest, the potential acquisition aligns with its strategic focus on domestic growth.
Under CEO Paul Thwaite, NatWest pursued expansion through acquisitions, including the purchase of Sainsbury’s banking business and a mortgage portfolio from Metro Bank.
The bank reported an annual profit of £6.2bn for the year ending 31 December 2024.
This performance has been attributed to progress in its growth strategy, productivity improvements, and strategic capital management.
A spokesperson for NatWest Group declined to comment on the matter, stating: “We do not comment on speculation.”
The UK is said to be one of Santander’s ten strategic markets, which also include Mexico, Brazil, and Spain.
Earlier this year, Santander CEO Ana Botín emphasised the importance of the UK market to the bank’s future plans.
According to Reuters, Barclays too had approached Santander regarding acquisition of its UK business, but no deal materialised.
Santander’s UK division posted a net profit of €1.3bn for 2024, marking a 15% decline from 2023.
Its return on tangible equity—a key measure of bank profitability—also lagged behind Santander’s other major markets.
