Once completed, the combined bank will have a total of nearly 28 million customers and will be the third largest UK bank in terms of personal current account deposits
Santander has agreed to buy banking rival TSB for £2.65billion – but what does this mean for customers? The deal was announced yesterday and sparks fears that TSB branches could disappear from the high street.
Once completed, the combined bank will have a total of nearly 28 million customers and will be the third largest UK bank in terms of personal current account deposits, behind Lloyds and NatWest.
Sabadell, the Spanish owner of TSB, confirmed last month it was considering a sale of the UK business. Barclays had also bid for TSB.
TSB was owned by Lloyds Banking Group up until 2013, when Lloyds TSB underwent a demerger to separate the two banks. Sabadell then bought TSB for £1.7billion in 2015.
What does this mean for TSB customers?
Santander said it “intends to integrate TSB in the Santander Group” as part of the deal, which could mean the TSB name will disappear from the high street in the future. However, no concrete details have been announced yet.
This means it is business as normal for both TSB and Santander customers for now. In a presentation to analysts, Santander hinted at future branch closures and said it plans a “rationalisation” of the overall branch network and structure, with aims to look at “overlaps” involving properties.
But again, nothing will change for customers or branches immediately. The deal needs to be approved by shareholders first and, if given the green light, is expected to conclude in the first three months of 2026. TSB has around 175 physical high street banks across the UK, while rival Santander has 349 branches.
Douglas Grant, Group CEO of Manx Financial Group, said: “While it will undoubtedly strengthen Santander’s UK presence, endorse the wider market, and deliver cost synergies, these are likely to involve significant branch closures, something the regulator will scrutinise closely.”
What does TSB say?
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.”
What does Santander say?
Mike Regnier, CEO of Santander UK, 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.
“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.
“This deal accelerates our transformation allowing us to enhance our customer proposition and invest more in innovative products and our digital offering, supported by the human touch service so many appreciate, not least in our new branch formats and enhancements across the country.
“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.”
