TSB reported a 20.7% rise in annual pre-tax profits to £350.4 million for 2025, as chief executive Marc Armengol announced he will step down to lead the bank's Spanish owner, Sabadell. The leadership change comes as the UK high street lender awaits completion of its near-£3 billion takeover by rival Santander, expected during the first half of 2026.
The bank reduced operating expenses by 4.4% to £786 million through cost control and business streamlining. Customer deposits rose 0.5% to £35.2 billion, while savings balances increased 2.3%. Loans to customers fell 0.2% to £36.3 billion in what the bank described as a "challenging" lending market.
Leadership transition
Armengol called 2025 an «extraordinary year for TSB» with «record financial performance». He will take over at Sabadell after May 2026, leaving TSB during a critical transition period. The bank employs more than 5,000 people and operates around 175 branches across the UK.
Takeover concerns
The Santander deal, valued at £2.65 billion and expected to rise to £2.9 billion upon completion, awaits regulatory approval. Fears persist over potential job cuts and branch closures across the combined group. Santander closed 44 branches last week, leaving it with 244 full branches before integrating TSB. It remains unclear whether the TSB brand will survive the acquisition.
Economic outlook
TSB noted in its results: «UK consumers remain cautious, yet resilient, in an uncertain economic environment. Unemployment increased in 2025 and economic growth has weakened, but the housing market remains stable and lower inflation is expected to pave the way for further base rate cuts in 2026.»
Note: This article was created with Artificial Intelligence (AI).
