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Santander vows to stay in the UK after firing a warning shot at Reeves

Ana Botin, Chairwoman of Santander, at the World Economic Forum
“We love Britain,” Santander chairwoman Ana Botin said at the World Economic Forum – Stefan Wermuth/Bloomberg

Santander’s chief executive insisted the bank would remain in the UK “into the future” after news that the main lender was reviewing its UK operations.

Ana Botin said the Spanish bank had no plans to withdraw from the UK market, although she warned that Europe risked becoming a “museum” full of over-regulated companies.

Speaking at the World Economic Forum in Davos, she said: “We love Britain. It is a co-market and will remain a co-market for Santander. Punto (point).”

Her comments come just hours after Chancellor Rachel Reeves launched a bid to intervene in a Supreme Court case to protect lenders from paying large compensation payments to victims of the abusive car finance scandal.

The Chancellor reportedly fears the case could make it harder for motorists to get car finance.

Lloyds Bank shares rose almost 5 percent on Tuesday morning following the reports, while Close Brothers shares rose as much as 21 percent. Both companies are major auto financing lenders.

Santander was forced to set aside £295 million to cover possible costs from the car finance scandal after the court ruling rocked the industry last year.

The major lender also faces intense competition for mortgages and falling interest rates and lower returns compared to other markets as the bank is strangled by red tape.

There continues to be speculation that the group is considering withdrawing from retail banking, which would put thousands of jobs at risk.

It comes two decades after the Spanish lender first entered the market with the purchase of Abbey National. Today the bank serves more than 14 million customers in the UK, employs 20,000 people and has more than 400 branches across the UK.

Ms Botin said it was important that European policymakers did more to help entrepreneurs start and grow a business, warning that Europe was facing a “growth crossroads”.

She said: “We are in danger of becoming a museum. Many of the innovations are actually happening in Europe. You know, we have a huge amount of startups. The problem is that they start here and then go to the United States. I think Europe has a great opportunity to take a leadership role.”

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