Santander reportedly looking to split its Consumer Finance business from wider UK division

Santander Consumer Finance is home to the Spanish bank’s motor finance business in the UK. 

 
The reorganisation would involve moving this division out of the Santander UK business, according to Bloomberg which cited unnamed sources. Such a split would, however, require approval from financial regulators.  

Santander declined to comment when reached out to by Bloomberg.  

It comes amend a climate in which the bank’s executive chair Ana Botin has been growing increasingly frustrated with the lagging performance of its UK business – with the bank having previously considered divesting assets in the country and may consider doing so again.

In January, it emerged the bank could be put up for sale – though City bosses have privately said it would be difficult to find a buyer until the final costs of the motor finance commission scandal are decided.  

The business put aside £295m to cover potential payouts in November, contributing to a drop in annual pre-tax profits from the lender – making the UK the only region other than its South American arm to suffer a slump in earnings in 2024.