Santander is preparing to remove the TSB name from Britain’s high streets following its acquisition of the UK retail bank, ending a brand history that stretches back more than 215 years, reported Financial Times citing sources.
The Spanish lender intends to operate the enlarged business under the Santander UK name once the integration of the two banks has been completed, the undisclosed sources told the publication.
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The £2.65bn purchase of TSB from Sabadell was agreed last year and completed last week.
In a statement to Retail Banker International, Santander spokesperson said: “We will consider carefully how to make the most of the brand value in our model long term and expect no immediate changes.
“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.”
The transaction brings Santander about five million more customers in the UK and adds over £45bn in assets.
It also strengthens the bank’s footprint in Scotland and the north of England, areas where its presence had been comparatively modest.
The deal is expected to produce roughly £400m in savings, the statement said.
The spokesperson further added: “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.”
The people familiar with the matter said Santander executives have also considered further reductions in expenses after the integration process, with possible additional savings of about £100mn after 2028.
TSB has around 175 branches in the UK.
Santander UK had 15,400 employees at the end of last year and has already been cutting roles as part of a broader restructuring.
The bank said last year it would shut a fifth of its UK branches and it has reduced its workforce by thousands over the past two years.
TSB employs about 5,000 people and, according to company filings, began an “enhanced listening” exercise to support staff dealing with uncertainty linked to the takeover and concerns over job losses.
The Spanish lender 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.”
