Santander UK Pledges No Branch Closures Until 2028 Following TSB Acquisition
The UK arm of the Spanish lender commits to keeping both Santander and recently acquired TSB branches operational for at least two years, aiming to balance digital services with in-person support.
Santander UK has announced a commitment to keep all of its branches, including those of the recently acquired TSB, open until at least 2028. The pledge comes as the bank integrates TSB, which it took over in April.
Mahesh Aditya, chief executive of Santander UK, stated that the bank does not intend to close any additional Santander or TSB branches before 2028. He emphasized the importance of branches as part of the bank's strategy, aiming to combine leading digital services with the personal support valued by customers.
Despite the commitment to keeping branches open, concerns remain that the TSB brand may eventually be phased out as the combined business will operate under the Santander UK name. The acquisition, valued at £2.65 billion, was completed on April 30.
Santander's announcement follows criticism from ministers regarding the widespread closure of bank branches, which they argue limits access to cash for vulnerable individuals. Banks, in turn, cite a shift in customer behavior towards digital services, reducing the need for physical networks.
Analysis by Which? indicates that 6,871 bank and building society branches have closed since January 2015. Lloyds Banking Group has led these closures with 1,611 branches shut across its brands. Santander has closed 612 branches during the same period, with 41 closures this year and further plans for closures in Whitehaven, Wilmslow, and Leighton Buzzard by the end of January 2027.
Santander reported a significant influx of new customers in the six months to the end of June, with 12 million new accounts opened, including 4 million from the TSB takeover. However, the integration of TSB incurred restructuring costs, contributing to a £213 million charge. The bank's pre-tax profits for the first half of the year fell by 31% to £528 million. This decline was also influenced by a £179 million provision for the car finance misselling scandal and increased bad debt charges amounting to £173 million. These bad debt charges were exacerbated by a worsening economic outlook in 2026, attributed to the fallout from the Iran war, and an additional £62 million in credit impairment related to the TSB acquisition.