A report in City AM said Santander has entered a bid of between £1.5bn and £2bn for the branches being marketed under the revived Williams & Glyn brand.

Santander is said to be the only remaining bidder for the branch network, which RBS is being forced to sell by the European Union under competition laws. Virgin Money, National Australia Bank and BBVA have all pulled out of the bidding.

Santander’s purchase of the RBS branches would increase its share of the UK business market from 3% to 9%.