Santander UK is reportedly planning to phase out the TSB name following its takeover of the business.
The banking group completed its near-£3 billion takeover of TSB at the end of April.
It marked the single biggest investment in Britain’s banking sector for more than 15 years.
TSB was taken over by Santander at the end of April in a deal worth nearly £3 billion (Image: Getty Images)
TSB bank to disappear from high street after £2.9billion Santander takeover
British retail and commercial bank TSB, based in Scotland, was founded in 1810, originating from the Trustee Savings Bank movement.
The TSB brand came about in the 60s, and in the 70s the various trustee banks amalgamated to become TSB, with the brand then listed in 1986.
It merged with Lloyds Bank in 1995, which led to the formation of Lloyds TSB in 1999.
In 2015, TSB confirmed a takeover bid by Sabadell for £1.7 billion, and today, TSB operates around 175 bank sites across the UK.
Santander agreed a £2.65 billion buyout of TSB from Spanish banking group Sabadell last year, but said the final price paid rose to £2.9 billion on completion.
Now, after the takeover, Santander is reportedly set to drop the TSB brand and run the combined business as Santander UK once the two lenders have been integrated, according to the Financial Times.
Reports also say that there would be no changes to the TSB brand, TSB accounts or products for at least 12 months.
A spokesman for Santander said: “The acquisition of TSB is about creating a stronger, more competitive bank in the UK, with the scale to invest significantly more in customer service, technology and products.
“TSB is a strong consumer banking brand and we recognise the value it has built with customers and within the UK market over a long time.
“We will consider carefully how to make the most of the brand value in our model long term and expect no immediate changes.
“Our guidance for expected integration benefits remain unchanged at above £400mn in pre-tax cost synergies by 2028.
“Given the similarities between Santander and TSB’s business model, we have previously indicated that this may be exceed over time across the combined business, however, any upside would come across the combined business and beyond our planning horizon of 2028.
“Our focus is on creating the best bank for customers in the UK and we are optimistic in the value this will create for all involved.”
What does the TSB takeover mean for customers?
The Santander UK takeover of TSB will see the combined group become the UK’s third biggest bank for current accounts and fourth for mortgages, with nearly 28 million customers nationwide.
Santander, which is owned by Banco Santander, said there would be no immediate change for customers of Santander or TSB, who can continue using their accounts and cards in the same way.
Nicola Bannister, who became chief executive of TSB on Friday (May 1), said: “Today mark
