TSB to cut jobs, close branches

TSB is to cut jobs and close branches as part of a restructuring plan announced by its Spanish parent Banco Sabadell.

Publishing Sabadell’s annual results, chief executive Cesar Gonzalez-Bueno was asked if a £29m provision made by TSB for restructuring costs would include job losses and branch closures.

He confirmed: "Yes, it will include both."

He did not put a number on either, however.

A TSB spokesperson told Sky News: "We have been clear about our focus on reducing costs, but as with any announcements about changing how we operate, we always consult with our colleagues first."

As at December 2023, TSB had 5,426 employees and 211 branches.

Sabadell said TSB ended 2023 with a standalone net profit of £175m, a 71% hike on the previous year, and contributed €195m to group earnings.

Net interest income increased by 4.1%, to £1bn, as interest rates rose, while net fees and commissions fell 5% to £108m.

Sabadell said: "It should be noted that TSB has started an efficiency improvement plan to reduce costs and focus on accelerating its core activity of mortgages, its historic field of specialisation."