The spin-off of Spanish bank Santander’s UK arm has been pushed back for a number of years, the boss of the British operation has revealed.
CEO Nathan Bostock said he did not expect the flotation of the business, first mooted five years ago, to take place “for the next couple of years”. When Bostock was hired from Royal Bank of Scotland last year it was regarded a sign that a sale was back on the cards.
The resignation of chief financial officer Stephen Jones earlier this week had sparked speculation that sale was no longer on the agenda. Jones, who joined from Barclays four years ago, said on Thursday that a flotation would still take place in the “medium term”.
As first half profits in the UK arm of Santander rose 67% to £928m, Bostock said the chancellor’s new 8% surcharge on banks’ earnings would have an impact on future profitability. The tax is being introduced from next year at the same time as the bank levy, which has hit larger banks harder, is being scaled back.
Bostock said the new tax appeared contrary to George Osborne’s efforts to increase competition in the banking sector, which is dominated by the big four of RBS, Lloyds Banking Group, Barclays and HSBC.
Santander has been winning business in the current account market and has already beaten its target for winning 300,000 new customers by the end of the year. Some 600,000 new customers have already switched to the account, advertised by sports people such as Jessica Ennis-Hill.
Asked about the potential for acquisitions, Bostock said: “There’s always a possibility but is certainly not our primary strategy”.
In 2012, Santander pulled out of buying branches that RBS must dispose of under the terms of its £45bn taxpayer bailout.
