TSB to cut jobs, close branches

(Sharecast News) - British high street lender TSB is to cut more than 200 jobs and close branches, it was confirmed on Wednesday. The bank, which is owned by Spain's Banco Sabadell, is understood to be seeking around 250 job cuts and the closure of 36 branches.

The Unite union said the redundancies would likely affect the bank's fraud operations, central operations and branch network.

A TSB spokesman said: "To meet changing customer needs and for TSB to remain competitive, we are making changes to simplify the way we operate.

"These decisions are never taken lightly. Our priority is to consult with impacted colleagues to ensure they fully supported, maximising redeployment opportunities where we can."

As at the end of 2023, TSB had around 5,400 employees and 211 branches. In February Sabadell confirmed plans to cut jobs and close branches as part of restructuring plan. It did not put a number on either, however.

The latest update came as it emerged that the chair of Spanish rival BBVA had told Sabadell it had "no room" to improve its takeover bid a day before the offer was rejected.

In an email sent to Sabadell chair Josep Oliu, his counterpart at BBVA, Carlos Torres, wrote: "I consider that it is very important that your board of directors knows that BBVA has no room to improve its economic terms."

He continued: "The market has also made it clear that there is no further upside, as BBVA's market capitalisation has fallen in the period by more than €6bn.

"This situation absolutely prevents us for being able to pay more premium than we are offering, because if we were to do so it is foreseeable that our value would fall again."

The email was made public by Sabadell.

BBVA made an all-share offer initially worth €12bn for Sabadell last week. However, BBVA's share price then fell sharply, undermining the valuation.

Sabadell, which acquired TSB in 2015, rejected the bid on Monday, noting at the time that the board was "highly confident" about the lender's current growth strategy and financial targets.