The future of high street bank TSB is in question after its Spanish owner Banco Sabadell confirmed it is considering a sale, following early approaches from potential buyers.

In a regulatory update, Sabadell said it had received “preliminary non-binding expressions of interest” for the full acquisition of TSB, which operates around 175 branches across the UK. The bank said it would assess any formal offers it receives for the Edinburgh-headquartered lender.

The news comes as Sabadell fends off a hostile £9.4 billion takeover bid from Spanish rival BBVA, which is seeking shareholder approval for the deal in the coming months. BBVA’s offer, initially tabled in May and valued at €12.28 billion, was rejected by Sabadell’s board and has since turned hostile — prompting speculation Sabadell may explore strategic divestments, including TSB, to reinforce its position.

Sabadell acquired TSB in 2015 for £1.7 billion, a year after Lloyds Banking Group spun off the brand in a public flotation. The purchase was aimed at giving Sabadell a foothold in the UK retail banking market.

However, TSB’s performance has been mixed, marred by a large-scale IT failure in 2018 and successive rounds of branch closures – though, they’re hardly the only bank with that problem.

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Despite these challenges, TSB has shown recent signs of financial recovery. In the first quarter of 2025, the bank reported a near-doubling of pre-tax profits to £101.3 million, up from £53.4 million a year earlier. The gains were driven by cost-cutting measures and a surge in mortgage activity ahead of April’s stamp duty deadline, with over 3,000 new home purchases supported in March alone.

According to reports in the Financial Times, potential suitors for TSB could include major UK banks such as Barclays, NatWest, Santander UK and HSBC.

Image source: TSB media library.