Major UK high street bank could be put up for sale

Banco Sabadell, the company which owns TSB bank, is considering selling it off as it deals with a hostile takeover.

TSB, which used to be part of Lloyds, has around 175 branches in the UK and around five million customers.

Its Spanish parent firm is now looking at options for selling it.

The Financial Times reported that potential bidders could include Barclays, NatWest, Santander UK and HSBC.

Sabadell has not revealed who has expressed interest, but said it will consider any potential offers.

In a regulatory filing, the banking giant said it received ‘preliminary non-binding expressions of interest for the acquisition of the entire share capital of TSB.’

What is TSB’s history in the UK?

Although many people still refer to Lloyds TSB, this is now well out of date.

Lloyds merged with TSB in 1995, and when they also took over HBOS plc in 2009, they become the biggest bank in the UK.

But in 2013, TSB was spun off to become a separate entity again in a stock market float.

And a year later, Sabadell bought TSB for £1.7 billion to gain a foothold in the UK.

Last month, TSB saw first-quarter profits nearly double, crediting cost-cutting and improved mortgage lending ahead of April’s stamp duty deadline.

The lender posted pre-tax profits of £101.3 million for the first quarter, up from £53.4 million a year ago.

Why might it now be sold?

Sabadell is trying to see off a takeover by Spanish rival BBVA.

It has launched a £9.4 billion move to take control, which it plans to put in front of shareholders soon.

Changes to the high street

The UK banking sector is still going through major changes with the ongoing shift towards more online banking.

NatWest said last week that it will close another 55 branches from September, in yet another blow to the high street.

A total of 52 permanent branches and three mobile vans will shut in the latest wave, including locations in Birmingham, Bristol and Cardiff.

Santander has also announced a spate of bank branch closures this summer, spelling bad news for UK high streets.

The potential sale of TSB is the latest in a flurry of recent dealmaking moves in the UK banking sector.

On Monday, Metro Bank shares jumped after reports it had attracted a takeover approach from investment firm Pollen Street Capital.

Meanwhile, Santander has reportedly pushed back bids from NatWest and Barclays to buy its UK retail bank.

Get in touch with our news team by emailing us at webnews@metro.co.uk.

For more stories like this, check our news page.