A major UK banking brand looks set to disappear from high streets forever after a recent takeover deal. The TSB brand, which has a history spanning over 215 years, could soon disappear as Santander plans to gradually retire the name.
The Spanish bank which is planning to takeover the UK retail lender intends to drop the TSB brand and run the combined business as Santander UK once the two banks have been integrated, according to the Financial Times. Santander’s £2.65 billion acquisition of TSB from Sabadell was agreed last year and completed last week. This move was the biggest investment in the UK banking sector in more than 15 years.
The disappearance of TSB would, if confirmed officially, mark the end of a banking brand dating back to 1810. TSB currently has 175 branches, however, the future of these stores looks uncertain as Santander announced plans last year to close a fifth of its UK sites after axing thousands of jobs.
The takeover boosts Santander’s customers by another 5m and gives the Spanish giant another £45bn in assets. It also enhances their presence in northern England and Scotland where it previously had a limited footprint.
Santander estimates the deal will generate around £400 million in savings, which is approximately 55% of TSB’s total cost base.
There will be no immediate change for TSB customers, and they can continue to use their TSB products, accounts and cards in the same way, a spokesperson for TSB confirmed.
Santander insisted there will be no immediate impact on accounts, cards or products, saying customers can continue banking as normal.
The combined bank will now be the third largest bank by current account balances and fourth largest by mortgages.
A spokesman for Santander said: “The acquisition of TSB is about creating a stronger, more competitive bank in the UK, with the scale to invest significantly more in customer service, technology and products.
“TSB is a strong consumer banking brand and we recognise the value it has built with customers and within the UK market over a long time.
“We will consider carefully how to make the most of the brand value in our model long term and expect no immediate changes.
“Our guidance for expected integration benefits remain unchanged at above £400mn in pre-tax cost synergies by 2028.
“Given the similarities between Santander and TSB’s business model, we have previously indicated that this may be exceed over time across the combined business, however, any upside would come across the combined business and beyond our planning horizon of 2028.
“Our focus is on creating the best bank for customers in the UK and we are optimistic in the value this will create for all involved.”
Nicola Bannister, TSB’s Chief Executive Officer, said: “Today marks a significant new chapter for TSB as we become part of Santander. I look forward to leading TSB as we combine the very best of these two great businesses to offer even better banking for our customers.”