Santander boasts about its acquisition of TSB in Sabadell: "It's a perfect fit."

MadridBanco Santander is proud of its acquisition of the British subsidiary TSB in Banc Sabadell. For the bank chaired by Ana Botín, the acquisition, which has occurred in the midst of the hostile takeover bid by BBVA, is a perfect fit for them, in the words of CEO Héctor Grisi. To acquire TSB, Santander will pay €3.1 billion, which Sabadell has used to announce an extraordinary dividend just as the takeover bid is finalized. In any case, the Vallesan bank's shareholders will have to ratify the sale at a general shareholders' meeting on August 6. This will also include the distribution of the extraordinary dividend (€2.5 billion).

"The purchase of TSB is highly complementary," Grisi stated at a press conference this Wednesday, coinciding with the presentation of the first half-year earnings. The CEO focused on the boost it represents for the mortgage business, where competition with its rivals is always very strong, and the deposit business in the United Kingdom.

The fact is that the United Kingdom is not a new market for Banco Santander, where it has a presence with Santander UK, nor is TSB (it already attempted to acquire it ten years ago), so the purchase process has been "very quick," according to sources at the bank. The entity estimated synergies or cost savings of 400 million euros, although it did not detail the impact on the workforce or branches. "The purchase places us in third place [in the United Kingdom] in current accounts and fourth place in mortgages," indicated Grisi. The entity also has not made a decision on the TSB brand, that is, whether it will maintain it or integrate it into Santander UK.

Santander has taken the money to pay for TSB from the sale of its subsidiary in Poland. "When we sold to Poland, TSB was not on the horizon," indicated Grisi, who wanted to separate the two movements. The bank continues to analyze other growth options, although it is cautious about doing so in Spain: "We have the right size and I don't see the need to make acquisitions in Spain at this time," said the CEO.

Record profits in six months

Banco Santander has once again shattered its all-time record for profits in six months. Between January and June, the bank chaired by Ana Botín earned a net profit of €6.833 billion, a 12.8% increase compared to the same period last year, according to a report released Wednesday by the National Securities Market Commission. With this figure, the bank is on track to surpass €12 billion in a single year, a figure it surpassed for the first time in 2024.

Santander once again achieved record profits despite the current situation. The bank, with a strong presence in the United States, is suffering from the country's trade tensions with Europe and Mexico. "We still need to know the details of the agreement [with the US]. Despite the negative impact on the eurozone, we believe it is not too significant," Grisi indicated. Likewise, like its competitors, it is beginning to notice the drop in interest rates by central banks, particularly the European Central Bank (ECB).

Thus, total income for the first half of the year remained within the planned range at €29.182 billion, up 0.5%. While interest income (net interest income) stood at €21.211 billion, down 3.8%, commission income rose 3%, reaching a record high of €6.684 billion in just six months. In fact, it is commissions that offset the drop in rates and their impact. Profitability rises to 16%, while efficiency improves by 41.5%. Finally, it expects to pay €350 million in 2025 due to the extraordinary tax imposed by the Spanish government.

With these gains on the table, Santander has announced a share buyback program worth €1.7 billion, in line with its shareholder remuneration policy.