Santander considering UK flotation

Santander started discussing a possible flotation following an initial public offering of its Brazilian subsidiary in October, reports the Financial Times.

A sale of its UK operations, which include the recently rebranded Abbey business and Bradford & Bingley branches, would raise funds for the bank.

Santander is said to be keen to raise enough funds to expand in the UK. The move would allow it to bolster its UK position by buying up the 300 branches due to be sold by Royal Bank of Scotalnd (RBS).

Santander refused to comment on the story but chief executive officer Alfredo Saenz said last week the bank aimed to grow in Britain and would examine any buy-up opportunities.

Santander's UK arm accounted for 16% of the group's profits which were announced last week.

More to follow......