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Santander injects £4.5bn into UK after buying 318 RBS branches
Santander has injected £4.5 billion into its Santander UK business to fund acquisitions and pay for the planned restructuring of the business here.
Markets
RBS has agreed to sell 318 branches to Santander for a £350 million premium as the Spanish group announced it has injected £4.5 billion into the UK arm of its business to fund future growth.
Santander expects said the £4.5 billion will be used to support organic and inorganic growth as well as a planned reorganisation of its UK business.
The news is likely to spark speculation about what other business Santander plans to buy, with Northern Rock likely to be seen as a prime candidate.
Meanwhile the sale of the 318 branches, which is expected to be completed by December 2011, comprises: 311 Royal Bank of Scotland branded branches in England and Wales; seven NatWest branded branches in Scotland; the retail and SME customer accounts attached to these branches; the Direct SME business and certain mid-corporate businesses.
RBS Chief Executive Stephen Hester (pictured) said, “This is an important milestone in our restructuring work and complements the significant momentum behind our recovery plan overall. The Bank is becoming stronger, which allows an increased focus on serving ongoing customers and improving commercial success; all a pre-requisite for the profitable realisation of taxpayers’ stake in RBS.
'I am pleased that by reaching the sale agreement early we can provide customers and staff with greater clarity on their future. Santander will be a good owner of these assets. The divestment will make them a stronger competitor in UK banking, especially in the SME and mid-corporate sectors.
'The separation and transfer process will take 12–18 months to complete and throughout this period we are committed to maintaining good standards of customer service and making the transfer to new ownership as seamless as possible. But for now, customers will not experience any change'.
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14 comments so far. Why not have your say?
Alexander Middlemas
Aug 04, 2010 at 08:40
This does nothing to increase competition. The last thing we need are more Santander branches.
If I were a customer that gets transferred from RBS to Santander the first thing I would do is move somewhere else, and so I think they will fail to hold a large number of customers.
report thisIan Pattison
Aug 04, 2010 at 10:11
Ask customers of Abbey and A&L what they think of Santander. More branches of a bank which offers poor customer service is exactly what we don't need. I will be transferring my RBS accounts to the identical products at the Nat West next door.
report thisRichard N
Aug 04, 2010 at 10:20
The bank is becoming stronger so sell 300 plus branches?!
Santander is a (HUGE) disaster waiting to happen. I am glad I left Abbey when it was Abbey National and already going down hill.
report thisKeith Simmonds
Aug 04, 2010 at 10:34
Is Santander stable? The Spanish economy is going downhill rapidly.
report thisAnonymous 1 needed this 'off the record'
Aug 04, 2010 at 10:38
Why is the FSA permitting the most complained about bank to take over an additional 300+ branches?? Surely Santander's own house should be in order before such an acquasition takes place.
report thisRonald Iles
Aug 04, 2010 at 10:46
Re the comment from Alexander Middlemas.The key was to pre-empt the sale by moving the account beforehand as I did.It was pretty clear two or three months ago where these branches would end up.
Customer service from just about all of the banks is pretty poor, but Santander surely should be awarded the wooden spoon,and I remain unconvinced of its financial strength.
report thisAnonymous 2 needed this 'off the record'
Aug 04, 2010 at 10:57
I couldn't agree with 'Anonymous 1' more and Keith - in my opinion, no.
report thisDavid Walmsley
Aug 04, 2010 at 11:04
ref moving accounts - just done it.........
report thisIan Stephens
Aug 04, 2010 at 11:07
I won’t bore you details with my latest experience of Santander’s pathetic efforts at providing service – but suffice to say that they are really to be avoided if at all possible. I, like many others who have commented, will be removing all my funds from them as soon as possible.
One wonders if they will have learned lessons from the debacle that was their attempt at merging their systems, with those of Abbey, when they do the same to the RBS accounts they are taking over. Given the apparent lack of basic understanding of customer needs demonstrated and obvious skill shortages within their IT function then one can predict a re –run. So all those who are advocating to vote with their feet are absolutely right.
Try First Direct who (as we all know) provide an exemplary level of service – they would be a welcome breath of fresh air for apoplectic Santander customers.
report thisAnonymous 3 needed this 'off the record'
Aug 04, 2010 at 15:25
Please say this isn't true someone !!
http://www.citywire.co.uk/money/wednesday-papers-citi-to-put-online-bank-egg-up-for-sale-bid-news-and-gossip/a419643/full?ref=citywire-money-latest-news-list
report thisThe Accountant
Aug 05, 2010 at 10:13
I am moving my account from RBS (England) across the road to Natwest. Same products same excellent internet banking package. I am not going to be told who to bank with.
So much for increased competition. This, in some peoples eyes, makes the EU decision makers look stupid or corrupt.
report thisAtheist
Aug 08, 2010 at 11:11
I am amazed at how many people dislike success,or is it
just that it is foreign success.
report thisAndrew Diggens
Aug 08, 2010 at 23:09
Its quite simple Atheist, I decide who I bank with not some nonentity in Brussels. Whatever RBS's faults, on a personal level they have always given excellent service operating my accounts. I have already sent an e-mail to my account manager stating that I have no intention of being handed over on a platter to Santander.
report thisAtheist
Aug 09, 2010 at 12:20
Andrew Diggens, and so you should,. But go vith caution if you look at LloydsTSB. they have not proved very good to me after my good old bank TSB were taken over by Lloydss, whereas I have found Santander excellent,you can only speak as you find.
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