Santander considers flotation of UK business

by Gill Montia

Story link: Santander considers flotation of UK business

Santander is reported to be considering selling a stake in its UK operations.

The bank, which is in the process of rebranding Abbey, Alliance & Leicester and Bradford & Bingley (B&B) to the group name, is understood to be looking at a London listing, along with other fundraising options.

Abbey was acquired by the Spanish banking giant in 2004, Alliance & Leicester in 2008 and the savings business and branch network of B&B in the same year, at the height of the banking crisis.

The group’s entire UK business is now valued at over £15 billion and further expansion is on the cards, with Santander tipped as a bidder for the 318 branches that Royal Bank of Scotland needs to divest to comply with EU competition rules.

Last week, Santander reported that the UK accounted for 16% of profit in 2009, with lending growing by 5% and deposits by 8% during the year.