The TSB name could disappear from the UK high street as part of a proposed £2.65 billion takeover by Santander, which plans to integrate the British bank into its UK operations, BBC reports.
The deal, announced this week, remains subject to approval by Sabadell shareholders—TSB’s current Spanish owner—as well as UK regulatory authorities.
If finalized, the acquisition would make Santander the third-largest bank in the UK by market share of personal current accounts. While no final decisions have been made regarding the TSB brand, Santander UK CEO Mike Regnier noted that the bank generally operates under a single brand globally.
“We tend to use the Santander brand on the high street around the world,” he told BBC Radio 4.
The deal could be worth up to £2.9 billion, depending on TSB’s performance before the expected closing in early 2026. However, it also raises concerns about potential branch closures and job losses, particularly in overlapping areas.
TSB currently operates 175 branches and employs about 5,000 staff in the UK. Santander, which has 349 branches, has already been reducing its physical footprint in response to rising digital banking adoption.
“There will be duplication, particularly in back office roles,” a Santander spokeswoman confirmed, while emphasizing that “for now it is business as usual” for employees and customers.
She added that affected staff would be informed through proper channels.
The deal is expected to generate cost savings of approximately 13% of the combined expenses of both banks, Regnier said, though he did not provide specifics on where cuts would be made.
TSB CEO Marc Armengol welcomed the announcement, describing the deal as “the next exciting chapter” and expressing confidence in a strong fit between TSB’s customer base and Santander’s operations.
The acquisition would continue Santander’s history of absorbing UK banking brands, following previous takeovers of Abbey National, Bradford & Bingley, and Alliance & Leicester. No clear timeline has been given for decisions regarding the TSB brand’s retirement or integration.
Sabadell, which acquired TSB for £1.7 billion in 2015, is offloading the bank as part of a broader strategy to counter a long-standing hostile takeover attempt by Spanish banking giant BBVA.
TSB’s recent history has included challenges, most notably a 2018 IT crisis during its transition from Lloyds’ systems to Sabadell’s. The incident, which disrupted online banking for weeks, led to a £49 million fine from UK regulators. TSB has confirmed that its current IT system will remain in place until a potential migration to Santander’s platform.
