Latest news with #BancoSabadell
Times
13 hours ago
- Business
- Times
What a TSB bank sale could mean for customers
TSB, one of Britain's biggest high street banks and mortgage lenders, has been put up for sale by its Spanish owner. Banco Sabadell is looking to sell TSB as it battles to fend off an €11 billion (£9.4 billion) hostile takeover from its Spanish rival, BBVA. Potential UK bidders for the high street bank include NatWest, Barclays, Santander and HSBC. TSB has more than 5 million customers, about 5,000 staff and 175 branches in the UK. Any offer for the bank would need shareholder approval and a sale would take time to finalise. We look at what it could mean for millions of TSB customers and shareholders. • Business live: follow the latest news on companies, markets and economics The primary driver is BBVA's drawn-out attempt to make a hostile takeover of Sabadell. Selling TSB could raise significant capital, which Sabadell could use to reward shareholders and make the company a tougher target for a BBVA acquisition. If BBVA does succeed in taking over Sabadell, the expectation is that it would look to sell TSB anyway. Sabadell bought the bank from Lloyds Banking Group for £1.75 billion in 2015. TSB said that for now, it's 'business as usual,' and customers shouldn't need to do anything differently. The bank is expected to remain a UK-based entity and will continue to be covered by the Financial Services Compensation Scheme (FSCS), which protects deposits of up to £85,000 if the firm holding your money fails. If TSB were sold, current accounts would probably be switched to the new owner. Those unhappy with a change could easily move banks using the Current Account Switch Service, which pledges to transfer customer deposits, direct debits and standing orders within seven days. While TSB has offered competitive current account deals in the past (such as its Classic Plus account, which offered cashback and savings features), some of its savings deals have not always been the most competitive. TSB now offers two current accounts. The Spend & Save account pays £5 a month cashback if you make 20 payments in a calendar month. It also gives you access to an easy access saver paying up to 2.05 per cent (which includes a 1.04 percentage point bonus for a year). • From threats to inviting us to tea: SJP changes its tune (and fees) The Spend & Save Plus account, which costs £3 a month, offers the same perks plus £100 interest-free overdraft and an easy access regular saver paying up to 5 per cent on up to £250 a month. The backing of another, potentially larger bank and an injection of capital could allow TSB to launch more attractive products and interest rates and become a stronger player in the market. TSB had £33.9 billion worth of mortgage lending on its books at the end of 2023, according to the banking association UK Finance. It can be worrying when the lender in charge of your mortgage changes hands, but it's not unusual — and TSB went through the process at its last sale in 2015. Any transfer would also be overseen and closely monitored by the Bank of England and the Financial Conduct Authority, the City watchdog, to protect customers. A new owner could change interest rates offered to borrowers starting a new mortgage deal, but those locked into a fixed rate would stay on the same terms and conditions until that deal expired. About 10 per cent of TSB's shares were held by private investors who bought them at £2.60 each when the bank floated on the stock exchange in June 2014. These were later sold to Sabadell when it acquired the bank in 2015. While no official price has been disclosed, sources familiar with the bank suggest that a sale could generate up to £2 billion. Laith Khalaf at the wealth manager AJ Bell said that if the bank were sold, those investors would get a windfall of up to £129.20 as well as the profit on selling shares at the £3.40 price offered by reported pre-tax profits of £285.1 million on income of £1.14 billion last year, up 21.1 per cent on the £235.5 million earned in 2023. It had total assets of £46.1 billion at the end of 2024.
Yahoo
3 days ago
- Business
- Yahoo
TSB branches and jobs under threat as takeover looms
TSB branches and jobs could be at risk if a high street UK bank buys the business from its Spanish owner, analysts have warned. Warnings of cost savings have been made after Banco Sabadell confirmed on Monday it had been approached by several unnamed bidders to acquire TSB, prompting speculation that NatWest or Barclays could hatch a £2bn deal. If a takeover is completed, bank industry analysts predict TSB's 175 branches and 4,900 staff could be in the firing line as bosses seek to push through cost savings. 'To the extent that you've got overlapping branch locations and overlapping capabilities, then clearly they would be under threat,' said Gary Greenwood, from Shore Capital. 'The reality is if you're doing this sort of deal and you're a large domestic bank acquiring a small domestic bank, then you're going to be looking for some cost savings.' It comes after investment bank RBC Markets said NatWest was the potential frontrunner for TSB because it is already on the lookout for possible takeover targets. It said there was ample 'fat to trim' from TSB's running costs, which are higher compared to banking rivals. Benjamin Toms, of RBC said TSB has already shrunk its branch network by two thirds over the past five years from 540 to just under 200, but more could still be axed. 'Clearly if you're going to end up with TSB branches next to NatWest branches, then they won't need both of those,' he said. 'Removing branches does not save you huge amounts of money as a bank, but it's incrementally helpful around the edges.' John Cronin, an analyst from Seapoint Insights, added: 'I would expect that you'd see branch closures. 'But to the extent it's acquired by another UK bank or building society, they'd be thoughtful around where the closures are affected. It probably looks no different to what TSB will end up doing anyway. 'From an employee perspective, typically, these things are negative. You're going to get some consolidation of roles and there's cost take-out – that's always one of the reasons for doing these transactions.' A takeover of TSB, which stands for Trustee Savings Bank, would mark the latest ownership shake-up for the centuries-old lender. Founded by a Scottish minister in 1810, it existed for years as a major mortgage lender before being acquired by Lloyds in the mid-1990s to become Lloyds TSB. It was later sold after the financial crisis as part of the Government's nationalisation of Lloyds to create a new standalone lender. Sabadell has owned the bank since 2015, after TSB briefly listed on the London stock market. The group is still a relatively small player in Britain's mortgage market, with a 2pc market share. Around 94pc of TSB's loan book is owner-occupier mortgages. TSB's future has been the subject of keen speculation in recent months. This stems from separate takeover talk at Sabadell, as rival BBVA is attempting to merge with the group. TSB and Sabadell declined to comment. NatWest was contacted for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Barclays and Santander are potential bidders for Banco Sabadell's TSB unit
-- Banco Sabadell SA's British unit TSB has drawn initial interest from potential buyers including Barclays Plc and Banco Santander SA (NYSE:SAN), according to a Reuters report on Wednesday. The banks are in early stages of exploring separate bids for TSB, according to the report. Sabadell confirmed Monday it had received expressions of interest and would consider offers for the business it has owned for ten years. A potential sale of TSB could strengthen Sabadell's defense against a hostile takeover attempt by rival BBVA (BME:BBVA) SA by removing a valuable asset from its portfolio. The discussions are still in preliminary phases, and there is no guarantee they will result in a transaction. Neither potential buyer has made a formal offer at this stage. Related articles Barclays and Santander are potential bidders for Banco Sabadell's TSB unit Apple interested in using AI to design custom chips- Reuters, citing exec Microsoft plans to cut thousands of jobs in sales division - Bloomberg
Yahoo
3 days ago
- Business
- Yahoo
Natwest top pick to acquire TSB
British banking juggernaut Natwest Group has been pegged as the 'most likely acquirer' of TSB Bank. Natwest returned to private ownership last month, ending a nearly two-decade-long banking saga and setting the lender up for a deals spree. The bank has purchased over £5bn worth of shares from the Treasury as part of its directed buyback program in the last four years, which now frees up bundles of capital for the lender. 'We think that this transaction makes the most sense for Natwest,' RBC analysts Pablo de la Torre Cuevas and Benjamin Toms said. 'Management has been the most open around potential merger and acquisition.' Analysts said a sales transaction could reach £2.6bn, which would 'not require Natwest to raise capital'. Cuevas and Toms said the takeover would help Natwest 'participate in UK consolidation, whilst increasing its market share in mortgages, where the bank is currently under weight.' TSB Bank's owners, Banco Sabadell, confirmed they had received expressions of interest over a potential takeover of their UK unit on Monday. Sabadell said it 'will assess any potential binding offer it may receive'. TSB was previously owned by Lloyds Banking Group and was acquired by Sabadell in 2015 for £1.7bn. Lloyds could be out of the running for a takeover due to 'market share concerns'. The Competition and Markets Authority (CMA) assesses merger and acquisition deals to ensure they don't substantially lessen competition. Lloyds, as the largest retail bank in the UK, may face scrutiny that a takeover could make it too dominant. But analysts noted the government's ousting of Marcus Bokkerink, former head of the CMA, could 'help facilitate UK deals, meaning that even Lloyds could kick the tyres on TSB.' Analysts said Natwest could afford the takeover through a £1.1bn reduction to buybacks and a marginal hit to its CET1 ratio, which indicates how well-capitalised and more likely to withstand financial stress. Natwest booked £1.8bn in pre-tax profit for the first quarter of the year, surpassing the £1.6bn pencilled in by analysts. A potential takeover would follow an £11bn bid by the group for Santander UK's retail arm earlier this year, according to reports from the Financial Times. Talks between the two lenders are no longer active, but should the takeover have gone ahead, it would have birthed the biggest banking deal since the financial crisis. The bank kicked off its shopping spree last year after snapping up the majority of Sainsbury's banking assets and purchasing Metro Bank's £2.5bn residential mortgages portfolio. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 days ago
- Business
- Bloomberg
Barclays Said to Be Among Firms Interested in Buying TSB
Banco Sabadell SA 's British unit TSB is attracting initial interest from potential buyers including Barclays Plc and Banco Santander SA, according to people familiar with the matter. The banks are in the early stages of exploring separate bids for TSB, according to the people, who asked not to be named discussing private information. Sabadell confirmed this week it had received expressions of interest and would consider offers for the business it's owned for ten years. A sale could help its defense against a hostile takeover by rival BBVA SA, by removing a valuable asset.
