Santander explored sale of UK business with NatWest

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According to people familiar with the matter, Santanda discusses the possible sales of the Spanish NDDer’s retail business with the NDD.

The discussion was discussed in the early stages last year, but both sides have interest in a possible agreement, people have added.

Santanda emphasized that his UK retail business “not for sale” Since the Financial Times reported last month it was Explore a possible exit Two decades after British High Street.

A person familiar with the situation says that Santanda did not go to any team about the UK business sales.

However, discussions between Santandar and one of Britain’s largest ND donors can raise more questions about the desire of the Spanish bank to continue it in the UK’s highly competitive mortgage market.

“Not for Santanda’s UK sale. The UK remains a core of the worldwide diversified business model in Santandar, ”said Santanda in a statement. It has added that the model has “the UK’s significant potential over the next few years, including the UK.”

Natweast says: “We do not comment on imagination”.

There are two banks divering strategies. Santanda has maintained an extensive international presence, while Natwest The financial crisis has returned to focus on his domestic market.

Santanda has become frustrated in Britain’s Ringfensing regime, its high expenditure base in the UK unit and weakened in Santandar’s other markets.

In the meantime, the UK government sells the end of its $ 46 billion crisis in the next four months, which is expected to come within the next four months, already for more aggressive growth.

A man, familiar with NatWest’s tactics, says that its retail bank has a place to grow, and MNA is exploring opportunities in anticipation of returning to private ownership.

Natwest FT’s banking told the summit In December, the nider was “front leg” during the acquisition of the donor.

Since taking the title of Thoet Bank in July 2023, most of the Natwest SinSbury has purchased $ 2.5 billion in prime residential mortgage from most banks and metro banks.

Santander’s UK business has previously attracted interest from other domestic rivals.

Last year, the Spanish group rejected a “low ball” offer for the unit from Berkless, FT last week. Analysts have assumed that the Santanda unit could generate $ 11 billion from sale and $ 15 billion.

“Berkless is more logical but Natweast is probably interested because they are desperate to turn away from the financial crisis and government shareholding inheritance,” said a man familiar with the discussion.

Last week, Santander’s UK business Knit Profit Report € 1.3bn for 2024, reduced by 15 percent in the previous year. Return on A equity – a measure of bank profitability – also remains far below Santandar’s other original markets.

After increasing the higher rate of interest income, the larger group said the record annual profit in 2024, and its corporate and investment bank fees have jumped.

The Spanish Bank is trying to induce investors about its global strategy and its presence in separate sets of market where it operates each other.