(2 July 2025 – United Kingdom) Santander has agreed to acquire TSB from Banco Sabadell in an all-cash deal valued at Ā£2.65 billion, reinforcing its long-term commitment to the UK market.
Sabadell originally bought TSB for Ā£1.7 billion in 2015, but the bank struggled under its ownership, notably after a failed IT upgrade left customers locked out of their accounts for months. TSB currently serves around five million UK customers, holds Ā£46.1 billion in assets, and posted pre-tax profits of Ā£285 million in 2024.
This acquisition counters speculation that Santander was preparing to reduce its UK footprint. Instead, the move will create a banking group with nearly 28 million retail and business customers across the UK. Together, Santander and TSB will become the UKās second-largest bank by personal current account balances and the fourth-largest mortgage lender.
āThe 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 Santanderās long-term objectives,ā said Ana BotĆn, Banco Santanderās executive chair. āThe transaction will accelerate our path to greater profitability in the UK and helps achieve a return on tangible equity of 16 percent by 2028.ā
Santander expects to generate at least Ā£400 million in annual cost savings by 2027, though it will incur Ā£520 million in restructuring costs. The integration will drive digital efficiencies and branch rationalisation, with TSBās 175 branches and 5,000 staff likely to face changes in the coming years as Santander aligns operations across its 349-branch UK network.