Santander sends out internal memo over fears it could quit the UK
Santander has rushed out an internal memo to senior managers after it emerged the bank is reviewing the future of its UK business. The chief executive of Santander’s UK corporate and commercial bank, John Baldwin, sent out a memo outlining how to respond to clients.
The internal memo and guidance also revealed how to respond to its 21,000 UK staff. In response to being asked if the bank is “planning to exit the UK”, bosses are instructed to say: “The UK is a core market for Santander. This has not changed. We remain focused on delivering our strategic priorities and continuing to serve our 14 million customers in the UK.”
Baldwin’s memo adds: “I trust that this is helpful and reinforces the bank’s position, should you be asked.” Sources said the bank is frustrated with lower returns at Santander UK, its independent board and high costs, as well as rules introduced following the 2008 financial crisis which may have led to lower returns than in other markets.
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A Santander spokesperson said: “The UK is a core market for Santander and this has not changed.” Insiders also told the Financial Times that Santander may want to shift its focus towards the US. A former Santander executive was reported as saying that it has "always been a possibility” that Ana Botín, the bank’s executive chair, would choose to sell.
Santander currently employs around 21,000 people in the UK and has around 14 million customers. In October, it announced plans to cut around 1,400 in an effort to cut costs. The report in the FT also said that if Santander chose to move away from retail and commercial banking, it would still operate in corporate and investment banking.
The bank has been in the UK since it purchased Abbey National in November 2004 and is a huge figure on the UK high street.