Banco Sabadell weighing sale of TSB Bank
Banco Sabadell is mulling the sale of its British high street bank TSB after receiving expressions of interest.
The Spanish lender confirmed last night that it has been approached regarding a potential takeover.
Sabadell is reportedly working with advisers to examine the sale of the high street lender and has been in contact with potential bidders, according to the Financial Times.
The bank said it “will assess any potential binding offer it may receive”.
“Naturally, any transaction would be subject to the satisfaction of all legal obligations,” it added.
TSB was previously owned by Lloyds Banking Group and was acquired by Sabadell in 2015 for £1.7bn.
This came as part of the bank’s plan to diversify its operations away from Spain.
Sabadell circled by banking rival
But Sabadell has since been caught in the centre of its own takeover scandal.
BBVA, Spain’s second-largest bank, has eyed an acquisition of Sabadell and lodged several offers with the lender.
Sabadell has shunned takeover proposals, leading to BBVA initiating a hostile takeover last May as the bank approached shareholders with a €12.2bn (£10.5bn) all-share merger proposal.
The Spanish government has intervened in the saga after previously opposing the takeover. In May, the government submitted a bill for review by cabinet ministers.
The friction has raised questions about the future of TSB Bank in Sabadell’s ownership, with the bank now exploring a sale.
The Edinburgh-headquartered lender increased profit before tax to £101.3m for the first three months of 2025 – an 89 per cent jump from £53.4m in 2024.
Meanwhile, operating expenses fell 4.7 per cent to £195m as the bank continued its 2024 commitment to cost control and efficiency initiatives.
A takeover of the high street lender would come amidst wider acquisition speculation across the banking industry. This week, Shawbrook’s private equity owners were reported to have lodged interest in a takeover of Metro Bank.