Santander considering floatation of UK bank business
Santander bought Abbey for £9 billion in 2005. The floation of its UK banking business could raise as much as £15 billion
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Monday, 08, Feb 2010 10:56
Santander could be about to float its UK banking business according to press reports over the weekend.
The Sunday Times reported yesterday that the Spanish banking giant was considering selling a minority stake in its UK banking business of 25% in order to raise capital to open more bank branches.
The UK banking business includes the former Abbey, Alliance & Leicester and Bradford & Bingley savings business.
Santander is considering buying the 300 bank branches that Royal Bank of Scotland has been forced by the European Union to put up for sale.
It is believed the bank will seek to float its UK banking business after successfully floating its Brazilian business last year. Brazil is a key market for Santander. The UK accounts for just 16% of the banking giant's global profits, with Latin America and Spain its biggest markets.
Santander refused to comment on the speculation over the weekend.
The Bank managed to increase deposits by 8 per cent in 2009 as UK savers opened 1.1 million new bank accounts. Loans grew by 5 per cent, while the group now claims a 19% market share of UK gross new mortgage lending. Santander bought Abbey in 2005 for £9 billion while the proposed floatation could raise as much as £15 billion.
The rebranding of Abbey and Bradford & Bingley branches was completed at the end of January and all three UK banks will be known as Santander by the end of the year.
Meanwhile, customers of Santander were yesterday unable to use cash manchines or online servies after the bank suffered a power cut.
The power failed at 11.00 am on Sunday following internal testing which affected more than 2,000 cash machines for the UK's third largest retail bank.
Customers were still able to use cards at tills for products up to a certain, undisclosed, value and for cash-back.
A Santander spokesman said power was returned at around 5.30pm with all ATMs and online banking services restored..
The Santander spokesman said its customers were able to withdraw cash from other banks' ATMs within three hours of the power failure.
He apologised for any inconvenience and said individuals with any outstanding issues or who felt they were financially disadvantaged should contact the company.