Could TSB disappear from the high street? Santander to buy bank for £2.65bn

ITV News

2 days ago

high street
Banking
The TSB brand could vanish from UK high streets after rival Santander agreed to buy the lender for £2.65 billion, amid fears the deal could lead to branch closures.
The move could mean people with a TSB account could become Santander customers in the future, which would create the UK's third largest bank by the number of personal current accounts.
Sabadell, the Spanish owner of TSB, said last month it was considering a sale of the UK business amid efforts to stop itself being subject to a hostile takeover.
Santander said it 'intends to integrate TSB in the Santander Group' as part of the deal, which needs to be agreed at a shareholder vote.
TSB runs around 175 branches across the UK and employs more than 5,000 people, while rival Santander runs 349 branches and has around 18,000 staff.
Both lenders have cut their number of sites in recent years as many customers have shifted to online banking.
The deal will raise fears of further job cuts and branch closures across the combined group.
What's going on with high street banks?
Thousands of bank branches have been vanishing from the high streets, driven by the rise of online banking.
According to the consumer group Which? 6,443 branches have close since 2015, which is an average of 53 per month.
NatWest Group, which includes the brands NatWest, Royal Bank of Scotland and Ulster Bank has closed 1,477 since 2015.
The individual bank to have closed the most branches is Barclays who have close 1,236 outlets.
There are currently 431 closures pencilled in for 2025: 105 from NatWest, 100 from Halifax, 95 from Santander, 93 from Lloyds, 24 from Bank of Scotland, eight from TSB and six from Barclays.
Nationwide has the most branches open across the country with 606 outlets still operating and has said it won't withdraw from any town or city in which it is based until at least 2028.
In a presentation to analysts, Santander said it plans a 'rationalisation' of the overall branch network and structure, with aims to look at 'overlaps' involving properties.
It comes a decade after Sabadell bought TSB for £1.7 billion to gain a foothold in the UK, a year after Lloyds had spun off TSB in a stock market float.
In May, TSB saw first-quarter profits nearly double thanks to cost-cutting and improved mortgage lending ahead of April's stamp duty deadline.
Marc Armengol, TSB chief executive, said: 'TSB is a truly special bank, run by a first-class team that deliver trusted service and support for customers, day in and day out.
'Today's announcement represents the next exciting chapter for this successful business, as part of Santander, a highly regarded banking group.
'I believe this will prove to be an excellent fit for our loyal customers.'
Ana Botin, Banco Santander's executive chairwoman, said: 'The acquisition of TSB represents a continuing strategic commitment to our customers in the UK, offering a compelling opportunity that is financially attractive to our shareholders and aligned with Santander's long-term objectives.
'It strengthens our franchise in a core market through the acquisition of a low-risk and complementary business that adds to our diversification.'