Latest news with #MikeRegnier
Yahoo
03-07-2025
- Business
- Yahoo
Spain's Santander buys TSB Bank to boost presence in the UK
Spanish Banco Santander S.A., the biggest lender in continental Europe by market capitalisation, is buying Scotland-based commercial bank TSB for £2.65 billion (€3.08bn). This is a major step to bolster the Spanish lender's future in the UK, as it has been struggling to keep its UK arm afloat. The acquisition of TSB Bank means 5 million customers will be transferred to Santander, who will keep a total of £35bn (€40.1bn) in their deposits. The combined entity will become the third-largest bank in the UK by share of personal current accounts and the fourth-largest by mortgages. However, TSB Bank's name and branding could disappear, as the Spanish lender intends to integrate TSB into the Santander UK group. Santander's chief executive Mike Regnier said to BBC, "We haven't made any decisions yet", but "we tend to use the Santander brand on the high street around the world". Related Sabadell Bank raises shareholder payout promise as BBVA eyes takeover Spanish bank BBVA will start offering bitcoin and ether trading Santander announces buyback plan while CA also sees earnings rise The Spanish bank is hoping to turn its fortunes around after it announced in March that it would cut hundreds of jobs and close a fifth of its branch network in the UK. TSB Bank has been a subsidiary of the Spanish Sabadell Group since 2015, which has now decided to sell the Edinburgh-based lender after it received unsolicited interest from another Spanish financial giant Banco Bilbao Vizcaya Argentaria (BBVA). Selling TSB Bank could weaken Sabadell's appeal as a merger target. The Spanish bank is expected to boost its returns to its shareholders, using the money it receives from Santander in the deal. It is part of a strategy where Sabadell seeks to retain shareholder interest as it attempts to repel the renewed takeover attempts from BBVA. Sabadell keeps a tab on its website for investors dedicated to the takeover bid, indicating how much shareholders would lose if they agreed to the merger. BBVA said on Monday that the bank 'is moving forward with the acquisition of Banco Sabadell,' despite Sabadell's opposition. Santander's deal is expected to generate a return on invested capital of over 20%. The common cost base of the two banks is expected to decline by 13%, equating to around £400mn (€466mn) in cost savings, according to the bank. A Santander spokeswoman did not rule out branch closures, and said to the BBC that there would be job cuts in the back offices without naming the number of jobs in danger. TSB announced in May that it would lay off 250 employees and close 36 branches. The bank has around 5,000 staff and 175 branches. Santander's deal, first, needs to gain the necessary regulatory approvals and a green light from Sabadell shareholders. After the announcement, the bank's shares were up by nearly 3% at midday in Europe. Sign in to access your portfolio
Daily Mail
02-07-2025
- Business
- Daily Mail
High St set for more branch closures as Santander snaps up rival TSB in £2.9bn deal
Santander yesterday admitted that branches could be closed and jobs lost as it takes over rival TSB. The Spanish bank, led by Ana Botin, also hinted that the TSB brand could disappear from the High Street, though no decisions have yet been made. The comments came a day after TSB's Spanish owner Sabadell agreed to sell the lender to Santander in a deal worth up to £2.9billion. It is expected to complete at the start of next year. TSB employs 5,000 people operating out of 175 branches while Santander UK has 349 branches with 18,000 staff. Asked about closures and job losses, Santander's UK boss Mike Regnier said: 'There will be efficiencies that we expect to make.' Santander expects to shave 13 per cent off the combined costs of Santander UK and TSB as a result of the takeover. Regnier said that will 'come from a number of areas', which will include bringing two IT platforms into one as well as back office functions. Speaking to the BBC, he added: 'All of us have been reducing and trimming the size of our branch networks. 'There's no point having two branches in the same town serving the same customers so there will be opportunities. When we complete the integration – and that won't happen for a few years – at that point we'll take a look and make decisions then.' The comments are likely to alarm campaigners who say the closure of huge numbers of bank branches over recent years – as many customers shun them in favour of online banking – has left the vulnerable and elderly in limbo. TSB had more than 600 branches when the brand was revived and spun out of Lloyds Banking Group in 2014. It was bought for £1.7billion by Sabadell and since then has shrunk dramatically. Figures from consumer group Which? show TSB has shut 459 branches since 2015 while Santander has axed 493. The deal came despite persistent speculation this year that Santander planned to leave the UK. But Regnier yesterday reiterated its commitment to Britain, saying it had 'invested an awful lot in the UK' and the deal was a 'vote of confidence'. He said that the takeover would help accelerate its growth plan and 'create one of the strongest, most competitive banks in the UK'. Regnier said TSB was a powerful brand but that 'typically at Santander we tend to use the Santander brand on the High Street around the world. That's the approach we normally take.' Jenny Ross, Which? Money editor, said the deal 'could understandably be concerning for some TSB and Santander customers, particularly those who prefer to use a local branch for their banking'. She added: 'If this deal goes ahead, the Financial Conduct Authority must look closely at any planned branch closures to ensure that there is no risk of customers, especially those with disabilities, losing access to local banking services or cash.' Tax raid warning Santander UK boss Mike Regnier has sounded the alarm over higher banking taxes as Rachel Reeves tries to fill the black hole in public finances. He said: 'Something the sector has made clear to this Government and previous governments is the importance of a strong banking sector in supporting economic growth. We lend into the economy. Santander lends £7,500 for every person in the UK. That is what the economy needs to grow and if you don't have a strong banking sector you won't get that support and that lending. 'Putting taxes up etc: these are not things that support a future growing economy because you won't have as strong a banking sector.'
Daily Mail
02-07-2025
- Business
- Daily Mail
Santander set to buy TSB - what does it mean for YOU?
Banking giant Santander has agreed to buy TSB in a deal worth up to £2.9billion. TSB was put up for sale by its Spanish owner Sabadell – which bought TSB in 2015 for £1.7billion – as it battles to fend off a hostile takeover approach by another Spanish bank, BBVA. The deal would see Britain's second largest bank created by share, overtaking NatWest and Lloyds banking groups. Santander said the combined UK bank would serve nearly 28million retail and business customers. TSB has around 5million customers, while Santander UK has around 14million retail customers who will now be wondering what the news means for them. Here is everything you need to know about what the deal means for you if you are a customer of either bank. Will anything change for customers immediately? The deal is still subject to regulatory approval as well as shareholder approval from TSB owner Sabadell. In the short term, most TSB and Santander customers will see no practical change with either brand for some time yet and it is business as usual for both banks. If it is approved, the deal is expected to complete in the first quarter of 2026, so it any decisions will likely be made in the early months of next year. Santander's chief executive Mike Regnier said 'we haven't made any decisions yet'. Santander said it intends to integrate TSB in the Santander UK group If the deal is approved. Further details will be shared with customers as the banks go through the acquisition process. TSB remains a full-service bank. Branches could be shuttered TSB currently has 175 branches and has closed 459 branches since 2015, while Santander has closed 493 branches since 2015. There are fears the proposed deal could lead to further branch closures. Santander said the combination of the firms would generate savings eventually worth £400million a year but only after restructuring costs amount to £520million. That is likely to be partly achieved by removing duplication in back-office roles, resulting in job cuts James Blower, founder of website the Savings Guru says: 'Where there are TSB and Santander branches in the same locations, or within a few miles of each other, I'd be surprised if they do not consolidate in to one. But that's likely to be from 2027 onwards. Santander customers could see better mortgage rates The takeover will bring Santander a high-quality mortgage portfolio of over £34billion - 2 per cent of market share in the UK - making it the fourth largest mortgage provider in the country. Jonathan Vaughan Burleigh, associate analyst, at data and analytics firm GlobalData says: 'That will enable it to better compete with the largest banks who have been outperforming Santander in recent years.' Santander said the combination of the two banks would bring customers 'greater access to low-risk mortgages and high-quality deposits.' But it might not be such good news for savings rates due to the combined size of the deposit book - Santander said the deal would would bring it £35billion of consumer deposits. For this reason, James Blower says: 'They [Santander] will need less new savings to grow so that's likely to mean pricing will need to be less competitive.' Better digital experience for TSB customers Santander's acquisition of TSB could bring an enhanced digital experience for TSB's customer base. TSB still runs on legacy infrastructure which caused a large IT meltdown in 2018, leaving millions of customers without access to online services for weeks. The issue occurred when TSB tried to move 1.3billion customer records from an old system run by former parent Lloyds to one managed by Sabadell. It was fined nearly £49million by the Financial Conduct Authority for 'widespread and serious' failings. Vaughan Burleigh says: 'Santander's focus on cloud technology, and its migration of core banking to its Gravity platform will undoubtedly provide a superior online offering that allows users to manage their day-to-day finances seamlessly and on-demand.' What did Santander and TSB say about the deal? Mike Regnier, Santander chief executive, said: 'This is an excellent deal for customers combining two strong and complementary banks, creating one of the most substantial banks in the UK and materially enhancing the competitiveness of the industry. 'We are fully committed to ensuring a seamless integration, by leveraging our market-leading technology and significant experience. 'Maintaining the highest levels of service for customers across both banks will be a key priority and we will support all colleagues through the transition, as we invest in building a stronger bank for the future.' Marc Armengol, TSB chied executive, said: '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.'
Euronews
02-07-2025
- Business
- Euronews
Spain's Santander buys TSB Bank to boost presence in the UK
Spanish Banco Santander S.A., the biggest lender in continental Europe by market capitalisation, is buying Scotland-based commercial bank TSB for £2.65 billion (€3.08bn). This is a major step to bolster the Spanish lender's future in the UK, as it has been struggling to keep its UK arm afloat. The acquisition of TSB Bank means 5 million customers will be transferred to Santander, who will keep a total of £35bn (€40.1bn) in their deposits. The combined entity will become the third-largest bank in the UK by share of personal current accounts and the fourth-largest by mortgages. However, TSB Bank's name and branding could disappear, as the Spanish lender intends to integrate TSB into the Santander UK group. Santander's chief executive Mike Regnier said to BBC, "We haven't made any decisions yet", but "we tend to use the Santander brand on the high street around the world". The Spanish bank is hoping to turn its fortunes around after it announced in March that it would cut hundreds of jobs and close a fifth of its branch network in the UK. TSB Bank has been a subsidiary of the Spanish Sabadell Group since 2015, which has now decided to sell the Edinburgh-based lender after it received unsolicited interest from another Spanish financial giant Banco Bilbao Vizcaya Argentaria (BBVA). Sabadell's efforts to repel BBVA's interest Selling TSB Bank could weaken Sabadell's appeal as a merger target. The Spanish bank is expected to boost its returns to its shareholders, using the money it receives from Santander in the deal. It is part of a strategy where Sabadell seeks to retain shareholder interest as it attempts to repel the renewed takeover attempts from BBVA. Sabadell keeps a tab on its website for investors dedicated to the takeover bid, indicating how much shareholders would lose if they agreed to the merger. BBVA said on Monday that the bank 'is moving forward with the acquisition of Banco Sabadell,' despite Sabadell's opposition. Santander's deal is expected to generate a return on invested capital of over 20%. The common cost base of the two banks is expected to decline by 13%, equating to around £400mn (€466mn) in cost savings, according to the bank. A Santander spokeswoman did not rule out branch closures, and said to the BBC that there would be job cuts in the back offices without naming the number of jobs in danger. TSB announced in May that it would lay off 250 employees and close 36 branches. The bank has around 5,000 staff and 175 branches. Santander's deal, first, needs to gain the necessary regulatory approvals and a green light from Sabadell shareholders. After the announcement, the bank's shares were up by nearly 3% at midday in Europe.
North Wales Chronicle
02-07-2025
- Business
- North Wales Chronicle
TSB to be sold to rival Santander for £2.65billion
The deal to acquire TSB from the Spanish parent firm of TSB, Sabadell, beating rival Barclays, was confirmed today (July 1). Santander intends to integrate TSB into the Santander UK group, meaning it would become the second-largest bank in the country. Bosses say the deal is 'aligned with Santander's long-term objectives'. However, the final transaction remains subject to regulatory approvals and Sabadell shareholder approval. The full transaction is expected to be completed in the first quarter of 2026. TSB already has a nationwide network of 218 branches and outlets, and a growing digital presence. It serves around five million customers, with £34 billion in mortgages and £35 billion in deposits. But with the latest buyout news, TSB combined with Santander would serve nearly 28 million retail and business customers nationwide. Santander has in the past year entertained bids from both NatWest and Barclays for its UK retail arm. Ana Botín, Banco Santander's executive chair, 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. "We are creating a stronger and more competitive business across key products such as personal current accounts where the combined business will become the second largest bank in the UK by market share. "The transaction will accelerate our path to greater profitability in the UK and helps achieve a return on tangible equity of 16% by 2028. "The acquisition also reflects our commitment to growing profitably through disciplined capital allocation. This acquisition meets our goal of achieving a return on investment above 20% and EPS accretion from year 1, while consuming limited capital and having low execution risk. Recommended reading: Nationwide offering fresh £280 in free bonuses to thousands of customers July Premium Bond winners have been announced - have you won £1 million O2 customers unable to make or receive calls as network 'working to get this fixed' "Furthermore, the transaction will not affect Santander's existing distribution policy and 2025 targets.' CEO of Santander UK, Mike Regnier, said he hoped they could become "the best bank for UK customers". He added: "This is an excellent deal for customers combining two strong and complementary banks, creating one of the most substantial banks in the UK and materially enhancing the competitiveness of the industry. 'At Santander UK we have momentum in our strategy to become the best bank for customers in the UK by investing in technology and service and improving our processes and efficiency." Marc Armengol, TSB CEO, 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 Group, a highly regarded banking group. "I believe this will prove to be an excellent fit for our loyal customers.'
