Bank rolls out new service hubs as more traditional branches close
Santander has dismissed once again speculations that it could exit the UK market, following reports linking the bank to a potential withdrawal and confirming plans to close 95 branches across the country.
“The UK is a core market for Santander and this has not changed,” a spokesperson for the bank was quoted as saying in a BirminghamLive report.
The comment comes after recent speculation, including a Financial Times report in January, which cited post-2008 regulatory pressures and reduced returns as possible reasons behind a shift in the banking giant’s strategy. Santander UK has also reported a sharp drop in profits, fuelling further speculation about its long-term commitment to the region.
For the 2024 financial year, Santander UK posted a 38% decline in pre-tax profit, falling to £1.3 billion. Revenue dropped 10% year-on-year to £4.7 billion, while net interest income decreased 7% to £4.3 billion. The UK was the only major market within the wider Santander Group to record a fall in earnings last year.
The bank is facing several headwinds, including increased deposit costs, mortgage market pressures, and exposure to the motor finance mis-selling issue affecting lenders across the sector.
Reports have suggested the bank’s parent company in Spain could be open to offers from potential buyers. The Times reported that Barclays may have shown interest in acquiring the UK arm, although no deal has been confirmed. Ana Botín, executive chair of Banco Santander, has previously denied any plans to exit the market.
.@bancosantander has insisted that it is committed to remaining in the British market. https://t.co/uZCFyokk1h
— Mortgage Introducer (@MortgageChat) February 3, 2025
Santander serves around 14 million customers in the UK. The announcement of 95 branch closures out of its current 444 comes as part of a broader shift toward digital services and alternative physical formats.
“As customer behaviour changes, we are ensuring that our branches remain fit for the future,” the bank representative said.
The closures will be offset by the introduction of Community Bankers, who will provide in-person support across local areas and at regional banking hubs. Santander is also expanding its Work Café initiative, with two new locations already launched and another expected soon.
The Work Café model, now being rolled out globally, combines co-working spaces, free WiFi, and event areas open to both customers and non-customers.
“Our new combination of full-service branches, alongside work cafes, counter-free branches and reduced hours branches, aims to provide the right balance between digital banking and face-to-face money management and guidance,” the spokesperson added.
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