Big Six mortgage lender considering UK exit

Banco Santander is reconsidering its presence in Britain, two decades after entering the market with its acquisition of Abbey National.

According to a report by the Financial Times, the bank is exploring a number of strategic options, one of which is exiting the British market.

The source said Santander's review is part of a regular assessment of its major businesses which could result in a variety of outcomes in the UK, including scaling back its business in the UK or exiting the market altogether to focus on bigger growth regions such as the United States.

However, the report stressed that "no deal or announcement was imminent and that the review was at an early stage".

Other sources said it was unclear which other firms could be interested in buying Santander UK and that it could yet decide to keep the business, even opting to increase its presence in the UK.

The review comes as Santander set aside £295m to cover potential redress relating to an industry-wide probe into motor finance commissions.

A former executive at Santander reportedly said that it had “always been a possibility” that Ana Botín, executive chair of Santander, would decide to sell the ringfenced bank.

However in a statement, Santander refused to confirm or deny the reports, simply stating: "The UK is a core market for Santander and this has not changed".