Banco Sabadell sells TSB to Santander in £2.65bn strategic overhaul
Banco Sabadell is selling its UK subsidiary TSB to Santander in a deal worth around £2.65 billion. The transaction, set to finalise by late April 2025, marks a key step in the bank's strategic revamp. Meanwhile, leadership changes are also underway at the Spanish lender.
The sale of TSB follows months of negotiations and is expected to bring in approximately £2.65 billion in cash. Once completed, Banco Sabadell plans to return a significant portion of the proceeds to shareholders. An extraordinary dividend of €0.50 per share—totalling around €2.5 billion—will be distributed after the deal closes.
The leadership transition will see Marc Armengol, currently TSB's chief executive, take over as Group CEO in May 2025. He replaces César González-Bueno, who is stepping down after five years in the role. González-Bueno's departure comes by mutual agreement, following a period of record financial results for the bank. Despite recent stock volatility, Banco Sabadell's shares have outperformed rivals over the past year. From March 2025 to March 2026, its market value rose by roughly 18%, compared to Santander's 12% and BBVA's 15% gains. Strong earnings in Spain and improved cost efficiencies drove this growth. However, the bank's stock has faced pressure in early 2026, trading down 2.07% at €2.98 and losing over 13% since January.
The TSB sale and leadership change will reshape Banco Sabadell's future direction. Shareholders will receive a substantial payout, while the bank's new CEO takes charge amid shifting market conditions. The deal's completion in April 2025 will mark the end of a major restructuring phase.
