Leading Spanish bank Santander has announced plans to exit the mortgage business in Germany.
The company confirmed on Wednesday that it plans to cut around 500 jobs in the country by 2026 in an effort to refocus its business on more profitable activities.
Despite recent stabilisation high interest rate rises have led Germany to undergo its worst downturn in home buying in decades, with mortgage lending slowing sharply as a result.
In comments to Reuters, a spokesperson for the bank said that it aims “to achieve the necessary reduction in roles through natural attrition, as well as voluntary and early retirement.”
Specifically, the reduction in staff will span across Santander’s entire German business, including its consumer bank. The company however said that the move would not see its 189 branch network close down any sites.
The bank currently has an outstanding mortgage loan book of around €2.5 billion in Germany.
Santander is not alone in reevaluating its approach to the German housing market. It’s largest competitor in the country Deutsche Bank has also announced hundreds of job cuts in an effort to streamline its mortgage business.
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