Santander UK strategy not to change despite RBS fallout

25th Oct 2012 11:51

Banco Santander Chief Executive Alfredo Sáenz has revealed that a date has not been set for the planned flotation of the group's business in the United Kingdom. Santander's UK business is a significant concern for analysts and investors after plans for an initial public offering (IPO) were postponed on several occasions and the purchase of 316 branches from RBS cancelled. Sáenz assured that there was no date established for the IPO as the bank waits for the market to change its vision and for results to stabilise. The strategy remains the same but execution is impossible to complete, Sáenz explained.In regards to the RBS deal, the goal was to increase market share in small business financing. Although the deal was cancelled, the strategy remains the same, Saenz said, adding that the group had provisioned £39m for operating costs but does not expect costs for breaking the deal or any fines.Banco Santander expects to reach a breakeven point for interest margins between the fourth quarter of this year and the first quarter of 2013.MG