MADRID, April 17 (Reuters) - Spain's Santander will exit the mortgage business in Germany and cut around 500 jobs there by the end of 2026 as part of a process to concentrate on more profitable activities, a spokesperson for the lender said on Wednesday.

The reduction in staff to 3,600 will be distributed across all Santander Germany companies, such as its consumer bank, and the move will not lead to a reduction of its branch network.

"We will aim to achieve the necessary reduction in roles through natural attrition, as well as voluntary and early retirement," a spokesperson said, adding that all Santander employees in Germany had been informed.

(Reporting by Jesús Aguado, editing by Andrei Khalip)