0857 GMT - To dispose of its U.K. operations, Santander would need strong financial justification and clarity on the deployment of released capital, UBS says after the Financial Times reported that NatWest offered 11 billion pounds for Santander UK's retail business. The Spanish bank rejected the approach as too low, according to the article. Santander has since agreed to sell a stake of its Polish business to Austria's Erste Group, which is thought to make a UK deal less likely as Santander doesn't need to build capital, the analysts write. "We see the strategic rationale for a disposal as being around limited progress made in business diversification ... and profit growth," they write in a research note. The U.K. business contributes more than 10% of group earnings and is a low-risk, stable unit. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
May 13, 2025 04:58 ET (08:58 GMT)
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