Sabadell completes the sale of TSB to Santander for €3.3 billion

BarcelonaBanco Sabadell has closed the sale of its British subsidiary, TSB, to Banco Santander for a cash amount of 2,860 million pounds (approximately 3,300 million euros), after receiving all the pertinent authorizations from supervisory and regulatory bodies. The purchase price was set at an agreed transaction of 2,650 million pounds (approximately 3,050 million euros), which implies a multiple of 1.5 times its book value, as reported by the Vallesano bank this Friday.

To this amount, as agreed, the tangible net asset value (TNAV) generated by TSB until the closing of the operation has been added, which has reached 213 million pounds (approximately 242 million euros). The operation generates more than 400 basis points of capital for Banco Sabadell and a capital gain slightly above 300 million euros after considering all the impacts derived from the operation, which will allow it to reward its shareholders with a gross extraordinary cash dividend of 50 euro cents per share on May 29.

The CEO of Banco Sabadell, César González-Bueno, has highlighted that it is "a great and attractive operation for all parties". The executive has emphasized that the sale, agreed during BBVA's failed takeover bid for Sabadell, occurs "at an opportune moment, allowing for an extraordinary dividend of 50 cents per share and focusing the bank's strategy on Spain, our natural market". For his part, the until now CEO of TSB and future CEO of Banco Sabadell, Marc Armengol, has stressed that "we have closed a very relevant operation for the British financial sector" and added that "TSB is today a success story in the United Kingdom thanks to the excellent work carried out by the entire team in recent years".

600 million euros in dividends in 10 years

Banco Sabadell acquired the British entity specializing in the mortgage business in 2015 at book value for an amount of 1.7 billion pounds. Since then, it has increased its credit book from 26.4 billion to 36.3 billion pounds at the close of 2025, while improving its efficiency ratio from 80% to 66% and increasing its profitability (ROTE) from 5.3% to 12.6%, according to the Catalan bank. Thanks to this, Banco Sabadell has received more than 600 million euros in dividends from its subsidiary over the past decade.

With this operation, Sabadell, which now wants to focus on the Spanish market, has committed to Banco Santander not to compete in the British market for the next 24 months. However, the bank chaired by Josep Oliu will maintain its branch in the United Kingdom, which supports companies in their international business, and will also be able to continue operating in this market through the corporate banking division (CIB).