Latest news with #AnaBotín
Scottish Sun
12-05-2025
- Automotive
- Scottish Sun
Major bank rejects NatWest takeover offer weeks after SCRAPPING car loans arm despite bosses saying it's not for sale
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A MAJOR bank reportedly rejected a takeover bid from NatWest despite bosses saying it wasn't for sale. Santander turned down a bid worth around £11billion for its UK retail banking arm as it was deemed too low earlier this year. 1 Santander reportedly rejected an £11billion bid for its UK retail arm Credit: PA The approach by NatWest, which was being advised by investment banks Morgan Stanley and UBS, is no longer being considered, the FT reported. It comes weeks after Santander said it would scrap the car loans arm from its core UK operation following a major car mis-selling scandal. Since NatWest's approach, Santander has raised €7billion from the sale of a large stake in its Polish retail banking arm. The Spanish-headquartered bank said it would use some of the cash from the sale to invest in other regions as it directs its attention away from Europe and focuses on the Americas. It has launched an aggressive expansion of its corporate and investment bank in the US, led by its chief executive Ana Botín. Meanwhile, the bank has announced more than 2,000 job cuts in the UK since last October and confirmed plans to shut 95 bank branches. The rejected offer comes after Santander was reported to be looking at ditching its car finance arm from its core UK operation. The bank has already set aside £295million to compensate any customers who were mis-sold finance agreements when buying cars. Ms Botín stated in February that the bank was not up for sale but city analysts suggested shedding its car finance division could make Santander more appealing to potential buyers. Benjamin Toms, of RBC Capital Markets, told The Telegraph: "Shifting of the consumer finance business out of the UK subsidiary could be an important step in this sale process. What is the Bank of England base rate and how does it affect me? "Given the ongoing litigation in the motor finance space, removing this product from the equation, will likely help with the marketability of the Santander UK asset." A Santander spokesperson said: 'As we have said, the UK is not for sale and is a core part of Santander's diversified business model which is proven to deliver attractive, sustainable returns over the long term." The Sun has approached NatWest for comment. Santander axing bank feature Santander is today scrapping its text alerts service allowing users to get notified when certain things happen to their accounts. Previously, you could set up free text and email alerts for various updates, like your weekly balance or large withdrawals. However, from today, customers who have set up these alerts will no longer receive them. Santander said it was making the change so customers can "get a more detailed view" of their account activity on online or mobile banking. However, consumer rights expert Martyn James said the move could "only be a bad thing for consumers". He said: "With the closure of the bank networks, it's more important than ever that banks and financial institutions make sure we know about the important things that affect our money. "Text alerts are vital as people actually read them and act on them. We forget about checking our online accounts - or go in to denial about them - and most people don't read their app messages." If you relied on the alerts, you'll now need to check your Santander account manually, either via the app, online, or by calling customer services. Those who are not a fan of banking via app may want to consider switching banks altogether. Many still offer free text alerts and some are even offering cash incentives to switch. How do I switch bank accounts? SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS). Dozens of high street banks and building societies are signed up - there's a full list on CASS' website. Under the switching service, swapping banks should take seven working days. You don't have to remember to move direct debits across when moving, as this is done for you. All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving. There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account. You should get in touch with your existing bank for any old statements. When switching current accounts, consider what other perks might come with joining a specific bank or building society. Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts. And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
The Sun
12-05-2025
- Automotive
- The Sun
Major bank rejects NatWest takeover offer weeks after SCRAPPING car loans arm despite bosses saying it's not for sale
A MAJOR bank reportedly rejected a takeover bid from NatWest despite bosses saying it wasn't for sale. Santander turned down a bid worth around £11billion for its UK retail banking arm as it was deemed too low earlier this year. The approach by NatWest, which was being advised by investment banks Morgan Stanley and UBS, is no longer being considered, the FT reported. It comes weeks after Santander said it would scrap the car loans arm from its core UK operation following a major car mis-selling scandal. Since NatWest's approach, Santander has raised €7billion from the sale of a large stake in its Polish retail banking arm. The Spanish-headquartered bank said it would use some of the cash from the sale to invest in other regions as it focuses its attentions away from Europe and to the Americas. It has launched an aggressive expansion of its corporate and investment bank in the US, led by its chief executive Ana Botín. Meanwhile, the bank has announced more than 2,000 job cuts in the UK since last October and confirmed plans to shut 95 bank branches. The rejected offer comes after Santander was reported to be looking at ditching its car finance arm from its core UK operation. The bank has already set aside £295million to compensate any customers who were mis-sold finance agreements when buying cars. Ms Botín stated in February that the bank was not up for sale but city analysts suggested shedding its car finance division could make Santander more appealing to potential buyers. Benjamin Toms, of RBC Capital Markets, told The Telegraph: "Shifting of the consumer finance business out of the UK subsidiary could be an important step in this sale process. What is the Bank of England base rate and how does it affect me? "Given the ongoing litigation in the motor finance space, removing this product from the equation, will likely help with the marketability of the Santander UK asset." A Santander spokesperson said: 'As we have said, the UK is not for sale and is a core part of Santander's diversified business model which is proven to deliver attractive, sustainable returns over the long term." The Sun asked NatWest to comment. Santander axing bank feature Santander is today scrapping its text alerts service allowing users to get notified when certain things happen to their accounts. Previously, you could set up free text and email alerts for various updates, like your weekly balance or large withdrawals. However, from today, customers who have set up these alerts will no longer receive them. Santander said it was making the change so customers can "get a more detailed view" of their account activity on online or mobile banking. However, consumer rights expert Martyn James said the move could "only be a bad thing for consumers". He said: "With the closure of the bank networks, it's more important than ever that banks and financial institutions make sure we know about the important things that affect our money. "Text alerts are vital as people actually read them and act on them. We forget about checking our online accounts - or go in to denial about them - and most people don't read their app messages." If you relied on the alerts, you'll now need to check your Santander account manually, either via the app, online, or by calling customer services. For those who are not a fan of app banking, you might want to consider switching banks altogether. Many still offer free text alerts and some are even offering cash incentives to switch. How do I switch bank accounts? SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS). Dozens of high street banks and building societies are signed up - there's a full list on CASS' website. Under the switching service, swapping banks should take seven working days. You don't have to remember to move direct debits across when moving, as this is done for you. All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving. There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account. You should get in touch with your existing bank for any old statements. When switching current accounts, consider what other perks might come with joining a specific bank or building society. Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts. And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@
Yahoo
06-05-2025
- Business
- Yahoo
Santander to offload 49% stake in Polish business to Erste for €7bn
Banco Santander has agreed to sell about 49% of its shares in its Polish banking business, Santander Polska, to Austrian bank Erste Group for €6.8bn($7.7bn). In addition, Erste will acquire 50% of Santander Polska's asset management business (TFI) not currently owned by the bank for €0.2bn, bringing the total value of the all-cash transaction to €7bn($7.9m). The transaction is expected to close by the end of 2025, contingent upon customary conditions and regulatory approval. Santander will retain around 13% of Santander Polska and plans to fully acquire Santander Consumer Bank Polska by purchasing the remaining 60% stake from Santander Polska before closing. The agreed transaction price is 584 zlotys per share, representing a 7.5% premium to Santander Polska's 2 May 2025 closing price. Erste will fund the all-cash purchase entirely with "internal resources", by cancelling its planned €700m share buyback and temporarily reducing its dividend payments. Santander expects to make a €2bn net capital gain from the sale. Alongside the equity transaction, Santander and Erste have agreed to enter a strategic cooperation covering Corporate & Investment Banking (CIB) and payment services. The collaboration will include a referral-based model allowing the institutions to leverage their respective regional strengths, offering localised solutions and market insights to corporate and institutional clients. Santander will also provide Erste's clients with access to its global CIB platforms across the UK, Europe, and the Americas. In the area of payments, the two banks intend to explore opportunities for Erste to utilise Santander's payment infrastructure, including services offered by Santander's PagoNxt platform, with the potential to expand access to Santander Polska post-transaction. Following the transaction, Banco Santander aims to return part of the capital to shareholders. It intends to distribute approximately €3.2bn via share buybacks, equivalent to 50% of the capital released. This would contribute to the group's broader buyback goal of up to €10bn from 2025 and 2026 earnings and surplus capital, with the possibility of exceeding that target depending on market conditions and regulatory approval. The bank anticipates the deal will be earnings per share accretive by 2027–2028, through a combination of organic growth, share repurchases, and selective acquisitions aligned with its strategic and return criteria. Banco Santander executive chair Ana Botín stated: "This transaction is another key step in our strategic focus on shareholder value creation which is based on both accelerating our platform strategy through ONE Transformation and growing the group's scale in geographies with highly connected markets.
Yahoo
23-04-2025
- Automotive
- Yahoo
Santander plans UK restructuring to ring-fence motor finance unit
Banco Santander SA is preparing to restructure its UK operations by carving out its consumer finance unit, including the division affected by mounting motor finance litigation, according to Bloomberg News. Citing unnamed sources familiar with the matter, Bloomberg reported that the Spanish lender is seeking regulatory consent to move its consumer finance business out of Santander UK Plc. The affected unit includes the bank's motor finance operations, which have been caught up in the wider UK car loan mis-selling scandal. The planned reorganisation forms part of a broader effort to implement a standardised operating model for Santander's consumer and auto finance activities across Europe and the Americas. A Santander spokesperson declined to comment. The litigation risk stems from a 2023 Court of Appeal ruling that deemed it unlawful for lenders to pay commissions to car dealers without informing customers. The judgment prompted a wave of compensation claims and forced banks to review historic lending practices. Santander UK has made a £295 million provision in response, which contributed to a 36% drop in pretax profit last year. This embedded content is not available in your region. Under Executive Chair Ana Botín, Santander has shifted investment focus toward the Americas, while de-emphasising European operations. Although Botín has described the UK as a 'core market,' the bank has previously examined asset sales in Britain and may revisit that option, according to Bloomberg's sources. The affected unit is part of Santander's Digital Consumer Bank (DCB), which also includes legacy provisions from litigation over foreign currency mortgages in Poland. In 2023, DCB was the least profitable of Santander's five main operating segments. Santander has recently moved from a geographic to a product-based reporting structure. Its retail operations now sit within a Retail & Commercial Banking division, while most consumer finance activity, including auto loans, is reported under DCB. "Santander plans UK restructuring to ring-fence motor finance unit" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Sun
23-04-2025
- Automotive
- The Sun
Major bank planning to SCRAP car loans arm ahead of issuing compensation payments to customers over mis-selling scandal
A MAJOR bank is looking to ditch its scandal hit car finance arm from its core UK operation. The decision follows a landmark ruling in October 2024, which deemed it unlawful for car dealers, acting as brokers, to receive commissions from lenders without obtaining the customer's consent. 1 Santander has already set aside £295million to compensate affected borrowers. This comes amid ongoing speculation that the bank may be considering a complete withdrawal from the UK market. Despite the rumours, Ana Botín, chief executive of Santander Group, stated in February that the bank was not up for sale. However, City analysts suggest that shedding its car finance division could enhance the appeal of its core banking operations to potential buyers. As reported by Bloomberg, the plan would involve moving the finance division out of its Santander UK Plc subsidiary. Benjamin Toms, of RBC Capital Markets, told The Telegraph: "Shifting of the consumer finance business out of the UK subsidiary could be an important step in this sale process. "Given the ongoing litigation in the motor finance space, removing this product from the equation, will likely help with the marketability of the Santander UK asset." The bank's ongoing plans come as the Supreme Court prepares to rule on whether lenders should be held responsible for compensating drivers. Should the ruling go against lenders, the total compensation bill is projected to reach £38billion, impacting numerous banks and specialist finance providers. In March, the Financial Conduct Authority (FCA) confirmed it had been granted permission to intervene in the case and had submitted its arguments to the Court. Should the Court rule that motor finance customers have suffered losses as a result of widespread failings by firms, the FCA is expected to consult on the introduction of an industry-wide compensation scheme. Under a redress scheme, firms would need to figure out if their mistakes caused customers to lose money. If they did, the firms would have to pay the right amount of compensation. The FCA would create rules for firms to follow and make sure they stick to them. This scheme would make things easier for customers compared to making a formal complaint. It would likely mean fewer people using claims management companies, so they'd get to keep all of the compensation they're owed. What is the FCA investigating and who is eligible for compensation? By James Flanders, Chief Consumer Reporter What is being investigated? The Financial Conduct Authority (FCA) launched an investigation last year into whether motorists were unknowingly overcharged when they took out car loans. The investigation by the City watchdog focuses on past practices where banks allowed car dealerships and brokers to set their own interest rates on loans. Under a now-banned discretionary commission arrangement (DCA), dealerships and brokers had a financial incentive to charge higher interest rates, as their commission increased proportionally. However, many customers were unaware of this practice. A landmark ruling in October 2024, deemed it unlawful for car dealers, acting as brokers, to receive commissions from lenders without obtaining the customer's consent. This applied to both discretionary commission arrangements (DCAs), where dealers set interest rates, and non-discretionary commissions. The Supreme Court is now preparing to rule on whether lenders should be held responsible for compensating drivers. Who is eligible for compensation? There are two criteria you must meet to have a chance at receiving compensation. First, you must be complaining about a finance deal on a motor vehicle (including cars, vans, motorbikes, and motorhomes) that was agreed upon before January 28, 2021. Second, you must have bought the vehicle through a mechanism like Personal Contract Purchase (PCP) or Hire Purchase (HP), which make up the majority of finance deals and mean you own the vehicle at the end of the agreement. Drivers who leased a car through a Personal Contract Hire, where you give the car back at the end of the lease, are not eligible. According to the financial regulator, on a typical £10,000 motor finance agreement, discretionary commission arrangements could have caused customers to pay an additional £1,100 in interest over a four-year term. The FCA extended the deadline for lenders to respond to complaints, meaning borrowers whose lenders received other forms of commission may now also be eligible for compensation. The Financial Ombudsman Service (FOS) revealed that it is grappling with a surge in complaints related to commission practices last month. Over 60,000 complaints are awaiting resolution - a staggering threefold increase since May 2024 - highlighting a potential scandal that could rival the infamous Payment Protection Insurance (PPI) debacle. PROGRESS OF FCA INVESTIGATION The FCA had initially planned to publish the results of its investigation in September, but this has now been postponed to May 2025. Additionally, firms now have until December 4, 2025, to respond to customer complaints. The FCA says it has had to push back the deadline due to it taking "longer than expected to get the data" it needed from implicated car finance firms. Investigators have also been unable to complete their review because of a pending court case surrounding one of the complaints. It's worth nothing, the FCA's decision to extend the deadline to December 4 next year is just when firms have to respond to any complaints. Customers are still encouraged to file their complaints before this date, and in some cases, there are specific time limits for doing so. You can find more information about any time limits the regulator sets by visiting HOW TO CLAIM Consumer finance website offers an email template to help you complain to your finance provider. You can download this by visiting Alternatively, you can complain directly without using the template. It's crucial for anyone who took out car finance to file a claim, even if a previous claim was denied. In your complaint, ask whether you were overcharged due to your broker receiving a commission and request the company to rectify this if it occurred. If you're unsatisfied with the company's response, you can escalate your complaint to the Financial Ombudsman Service (FOS) at no cost. You have until July 29, 2026, or up to 15 months from the date of the company's final response letter, whichever is longer. Avoid using a claims management firm, as they will take a portion of any successful claim. LENDERS SET ASIDE COMPO CASH CUSTOMERS of several major high street banks who were mis-sold car finance could be in line to receive thousands of pounds in redress. Last month, Lloyds Banking Group revealed it has set aside another £700million for potential compensation relating to motor finance commission arrangements this morning. The bank said the provision – taken in the fourth quarter, and adding to the £450million provision taken last year – was in light of a court judgment on the issue. Barclays has additionally allocated £90million in response to the car finance scandal, while Santander revealed last year that it had earmarked £295 million for potential payouts. Meanwhile, Close Brothers announced it anticipates setting aside up to £165million in the first half of the year to address potential legal and compensation costs arising from the ongoing review into car loan commissions.
