TSB slated for sale next year after cost-cutting

TSB will be put back up for sale next year after closing branches and slashing costs, The Mail on Sunday has learnt.

Spanish bank Sabadell – which bought TSB for £1.7 billion in 2015 – is expected to trigger a formal sale process in the first half of next year after posting results in February, two sources said.

It is understood Co-op Bank is still interested in acquiring TSB although the banks are not in discussions. The ethical lender made a surprise £1 billion bid for TSB in October.

But it was rebuffed by Sabadell, which said: ‘This is not a transaction that we wish to explore at this moment.’

Previously, TSB was put up for sale at the end of last year but pulled in March this year.

TSB has since undergone changes to reduce its cost base and last week announced 70 branch closures, reducing its network to 220.

It also said boss Debbie Crosbie will leave to become chief executive of Nationwide. Her interim replacement will be chief customer officer Robin Bulloch.

TSB has long struggled with a large cost base after being carved out of Lloyds in 2013 with 630 branches.

Under Crosbie, TSB has cut costs and boosted lending. Profit this year hit £110 million after a loss of £152 million in 2020. Sabadell declined to comment.

Interview: Co-op is on the hunt for takeovers – Page 129