UK banking giant closing 52 branches in 2025 rules out bidding for TSB | UK | News
One of the UK’s biggest high street lenders, NatWest, has confirmed it will not be placing a bid for rival bank TSB, narrowing the field of potential suitors for the Spanish-owned retail lender. The decision comes as NatWest also prepares to shut a number of its branches across the UK in 2025, part of a wider industry shift toward digital banking.
NatWest Group has confirmed plans to close 52 of its high street branches by June 2025, marking an ongoing shift toward digital banking. Earlier this year, the bank closed 48, bringing the total to over 100 branch closures in just the past two years
The withdrawal from the TSB bidding process, confirmed by individuals familiar with the matter, eliminates a major contender from a competitive sale anticipated to draw interest from Britain’s largest banks.
NatWest, which returned to full private ownership in May after years of government control following the 2008 financial crisis, is said to be maintaining a highly selective approach to acquisitions.
Bids for TSB, which is owned by Spanish group Banco Sabadell, are due by June 27. Other likely bidders still in the running include Barclays and Santander UK.
While both have previously held talks with Sabadell, past negotiations reportedly faltered over disagreements on price.
TSB, which serves around five million UK customers and reported £285 million in pre-tax profits last year, has seen its future thrown into uncertainty amid Sabadell’s attempts to fend off a hostile €11 billion takeover bid from Spanish rival BBVA.
Selling off its UK retail arm could strengthen Sabadell’s position and unlock value for shareholders.
Despite speculation that it would pursue a deal, NatWest’s chief executive Paul Thwaite reiterated last week that the bank would only consider acquisitions that meet its “very high financial and operational bar”.
He said the bank remains focused on disciplined growth rather than chasing scale for its own sake.
TSB’s chequered history includes a high-profile IT meltdown in 2018 following its migration from Lloyds Banking Group systems, which locked two million customers out of their accounts and led to a £49 million regulatory fine.
Meanwhile, NatWest is continuing to streamline its physical presence, with dozens of branch closures expected in 2025. The bank, like many of its peers, is responding to declining in-person visits as customers increasingly switch to mobile and online services.
Both NatWest and Sabadell declined to comment further on the sale.
