Santander UK's board chair William Vereker is to step down, the Spanish lender said last night, writes David Connett.

Vereker, the bank's chair since 2020, reportedly resigned after a rift with the bank's Spanish parent company and its chair, Ana Botín.

His departure follows reports that Santander was reviewing its presence in the UK as part of an assessment of its major markets.

Botín said last week that Britain is and will remain a core market for the Spanish lender.

Last night she said that Vereker had overseen an essential transformation of the business that "will make the UK a core part of the group's success in the years to come".

Vereker previously told the Santander board that he had intended to step down later this year, the Financial Times reported.

The Spanish group is said to be struggling to boost profits in the UK in comparison with its overall returns amid concerns about the higher costs of business borne by banks in Britain compared with other countries.

Santander entered the UK market in 2004 when it bought Abbey National.

It also acquired what was then Bradford & Bingley and Alliance & Leicester.

Santander confirmed that Vereker had announced "his intention to step down this year, once an orderly handover process has been completed".