TSB Bank is a UK retail and commercial bank and a subsidiary of Spain’s Sabadell. The bank has a 550 branch network across England, Scotland and Wales but none in Northern Ireland. It offers a full range of personal and business banking/financial services, including current accounts, mortgages, loans, insurance, and savings. 

While Lloyds acquired TSB (Trustee Savings Bank) in 1995 it sold the subsidiary to Spain’s Sabadell in 2013 for £1.7bn, in order to comply with European state aid regulations related to Lloyds’ 2008/9 taxpayer funded 43% £20bn bailout at the height of the financial crisis.

 

The spin-off of TSB was to respect European state-aid rules following Lloyds’ £20bn 2008 bailout, a matter made worse by Lloyds disastrous politically-backed acquisition of the troubled HBOS. The branch network was close to being sold to the UK’s Co-operative group in 2013 for £750m, and politicians hoped it would provide more high-street competition, but the deal collapsed after 9 months in April 2013 without any other serious suitors.

 

TSB relaunched in September 2013 with headquarters in Edinburgh, over 4.6 million customers, over 100K business accounts and more than £20 billion of loans and customer deposits. The bank was formed from the existing business of Lloyds TSB Scotland (185 branches), into which a number of Lloyds TSB branches in England and Wales (282) and all branches of building society Cheltenham & Gloucester (164) were transferred. The group and its 631 branches was then renamed and shortened to TSB Bank before it planned to sell TSB Bank shares and return to the stock market.

 

The re-established TSB was listed on the London Stock Exchange (LSE) via a June 2014 initial public offering (IPO), worth just over £1bn, in which TSB Bank shares were sold to the public. TSB Bank shares was a member of the UK Index ’s second-tier Index until its acquisition by Sabadell.