TSB has written to customers today (July 3) to reassure them it is ‘business as usual’ after its owners struck a deal to sell the bank to Santander.
TSB, which in the 1980s became famous for its slogan ‘the bank that likes to say yes’ returned to the UK market in 2013 after the Credit Crisis of 2008.
For the past 10 years, it had been owned by Spanish bank Sabadell, but the owners yesterday (July 2) announced they had accepted a £2.65bn offer by fellow Spanish bank Santander.
The deal still needs to be approved by Sabadell shareholders, as well as by regulators.
The letter to customers reassured them it would be “business as usual”, with all existing contracts and contracts in the pipeline still being honoured.
The letter, signed by Marc Armengol TSB chief executive, said: “The process for completing this deal is expected to take several months. We will continue to share details throughout the process and update you on the expected timings.
“Meanwhile, it is very much business as usual for TSB customers while this process takes place.
“TSB continues to operate as a full-service bank, and our focus remains on supporting you, and all our customers, as we have always done. No action is required by you as a result of this announcement.”
There was no mention whether the TSB brand would be subsumed into the Santander brand, or whether it would continue to operate as a fully-owned subsidiary with a distinct brand.
Commentators across social media have expressed concern that, as a result of this £2.65bn deal, the UK high street could lose a major British brand which has a lot of resonance with consumers.
But the bank had already been under fire in recent years for closing branches; in 2020, FT Adviser reported that 900 job losses were expected as a result of branch closures.
Armengol thanked consumers for “continuing to bank with TSB”.
He added: “We are incredibly grateful for your support and look forward to continuing to serve you and deliver on TSB’s purpose to help everyone feel more confident with their money, every day.”
TSB has now published a Q&A on its website to help consumers and brokers.
simoney.kyriakou@ft.com
