Banco Santander (SAN) is mulling strategic options for its UK operations, including a potential exit, amid low returns and its exposure to a British court ruling over possible mis-selling of car loans in the country, the Financial Times reported Sunday, citing unnamed sources familiar with the matter.

A former executive said Santander UK, which covers the bank's retail and commercial banking operations, has struggled in recent years due to high costs and the UK's ring fencing regime, among others, the Financial Times said.

According to the report, sources said Santander would retain corporate and investment banking operations in the UK should it decide to exit retail and commercial banking in the country.

Sources also told the Financial Times that Santander is looking to focus on higher growth regions like the US but the review is still at an early stage and the company could still keep its UK business.

Banco Santander did not immediately respond to MT Newswires' request for a comment.

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