Santander UK and TSB have applied to transfer TSB's business into Santander UK under Part VII of the Financial Services and Markets Act 2000, the two banks said. If the High Court approves the scheme, the transfer is expected to take place on 22 March 2027.
The transfer would move TSB's products and accounts legally to Santander UK. TSB Bank plc is already a wholly owned subsidiary of Santander UK plc, but the two banks remain separate legal entities, and TSB said there would be no immediate change to the way its customers bank if the transfer is approved.
HOW THE TRANSFER WORKS
The banks said the scheme is meant to simplify the Santander UK group structure and support the integration of TSB. "Our application to transfer TSB's business to Santander UK is a further step on the journey to integrating the two banks," said Mahesh Aditya, chief executive of Santander UK.
The High Court hearing is set for 15 February 2027 at the Rolls Building. Anyone who believes they would be negatively affected has the right to object, by contacting TSB, attending the hearing in person or appointing a representative to attend on their behalf.
Some changes are expected later: after the transfer, TSB customers are expected to migrate to Santander UK systems, platforms and channels in the second half of 2027, and Santander UK has confirmed there will be no further branch closures before 2028 at the earliest.
A £2.65BN PURCHASE FROM SABADELL
Santander UK bought 100% of TSB Banking Group from Banco de Sabadell, completing the deal on 30 April 2026 after approval from the Prudential Regulation Authority on 19 March 2026 and the European Central Bank on 14 April 2026. The final price was £2.65bn plus a £211m adjustment for the change in TSB's tangible net asset value.
Together the two banks are the UK's third largest by personal current account balances and fourth largest by mortgage market share, serving nearly 28 million retail and business customers. TSB alone has 5 million customers and 175 branches across the UK.
Santander UK's profit before tax for the first nine months of 2026 fell by £71m to £1,158m, mainly because of a motor finance commission charge and higher restructuring costs, partly offset by a £96m contribution from TSB. Operating expenses rose 8%, including TSB's costs of £327m, and nearly 1,000 TSB staff in central functions moved their legal employer to Santander UK on 1 October 2026.
The bank has said the Part VII transfer is separate from the proposed later migration of TSB customer products and data onto Santander UK systems. "TSB customers will continue to be part of a locally focused UK bank, while also enjoying the global scale, stability and security of the Santander Group," said Nicola Bannister, chief executive of TSB and head of distribution at Santander UK.
THE TGB VIEW
Banco Santander ranks 4th in Europe in the TGB Bank Rankings with a 13.7% return on equity for 2025, level with NatWest Group at 13.7% and well ahead of Lloyds Banking Group at 9.8%. Santander UK reports a different measure, return on tangible equity, which stood at 10.6% against 10.0% at December 2025, and the TSB deal is expected to help lift it to 16% by 2028 with cost synergies of at least £400m. The dates to watch are the High Court hearing on 15 February 2027 and, if the court approves, the transfer on 22 March 2027.
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