TSB not for sale, chief of Spanish owner insists

The chief of Spanish bank Banco Sabadell has dismissed speculation the firm is mulling ditching UK lender TSB.

Cesar Gonzalez-Bueno, chief executive of Banco Sabadell, told reporters at an event today “there is no intention to sell” TSB.

The push back comes after Edi Truell, a veteran City investor, is reportedly considering setting up an investment company that may launch a bid for the UK high street lender.  

The news was first reported by The Sunday Times.

Gonzalez-Bueno said interest in TSB indicated the bank is in rude health.

“We are pleased that there are initiatives to buy [TSB], because it means that the bank is doing well,” he said.

TSB was sold to Banco Sabadell in 2015 by Britain’s largest mortgage lender, Lloyds Bank, for £1.7bn

According to Banco Sabadell’s latest set of results, TSB netted £21m in profits in the first three months of this year, helping to boost the group’s overall bottom line over a fifth.

TSB is still trying to repair the damage inflicted on its reputation by a botched migration of legacy Lloyds Bank customers onto its IT system.

The move resulted in nearly 2m customers being locked out of their current accounts for weeks.

TSB shut 70 branches last November, narrowing its high street footprint to 220 stores in Great Britain. The bank employs around 6,000 staff, according to its latest annual report.

Banco Sabadell has embarked on a successful two-year campaign to turnaround TSB’s finances.

In 2018, TSB notched a £105m loss, but in 2019 and 2021, the firm netted £46m and £130m in profits, respectively. 

Like many other banks, TSB booked heavy losses during the peak of the Covid-19 crisis in 2020.

Banco Sabadell did not respond in time to a request for comment.