• The Group records a capital gain of 300 million euros and generates more than 400 basis points of capital through the transaction
  • The total amount received includes the £2.65 billion (approximately €3.05 billion) purchase price, plus the £213 million (approximately €240 million) in value generated by TSB in the months leading up to the closing of the transaction
  • Banco Sabadell’s CEO, César González-Bueno, highlights that “it is a great transaction that is compelling for both parties. Furthermore, the timing is highly favourable, enabling the distribution of an extraordinary dividend of 50 euro cents per share and allowing the Bank to focus its strategy on Spain, our natural market”
  • The outgoing CEO of TSB, Marc Armengol, notes that “We have closed a very significant transaction for the UK financial sector. TSB is now a success story in the United Kingdom, thanks to the outstanding work of its entire team in recent years”
  • Banco Sabadell remains firmly committed to delivering approximately 6.45 billion euros in shareholder remuneration between 2025 and 2027
  • Banco Sabadell acquired the British bank specialised in mortgage lending in 2015 for 1.7 billion pounds and, since then, has received in excess of 600 million euros in dividends from its subsidiary

1 May 2026

Banco Sabadell has completed the sale of its British subsidiary, TSB, to Banco Santander for 2.863 billion pounds (around 3.3 billion euros) in cash, having obtained all the relevant supervisory and regulatory approvals.

The purchase price was set at £2.65 billion (approximately €3.05 billion) when the transaction was agreed upon, representing a multiple of 1.5 times its book value. To this amount, as agreed, has been added the tangible net asset value (TNAV) generated by TSB through the closing of the transaction, which reached 213 million pounds (approximately 242 million euros).

The transaction generates more than 400 basis points of capital gain of slightly above €300 million for Banco Sabadell, once all impacts arising from the transaction have been taken into account, and enabling the distribution to shareholders on 29 May of an extraordinary cash dividend of 50 euro cents per share.

Banco Sabadell’s CEO, César González-Bueno, highlights that “it is a great transaction that is compelling for both parties. Furthermore, the timing is highly favourable, enabling the distribution of an extraordinary dividend of 50 euro cents per share and allowing the Bank to focus its strategy on Spain, our natural market.”

Meanwhile, the outgoing CEO of TSB and incoming CEO of Banco Sabadell, Marc Armengol, noted that “We have closed a very significant transaction for the UK financial sector. TSB is now a success story in the United Kingdom, thanks to the outstanding work of its entire team in recent years.”

A dividend of 50 cents per share

As approved by Banco Sabadell’s EGM in August 2025, virtually all of the capital generated by the sale of TSB will be distributed as an extraordinary cash dividend of 50 cents per share.

This extraordinary dividend, together with the dividends to be distributed by the Institution and its share buyback and cancellation programmes, will bring total shareholder remuneration to approximately 6.45 billion euros over the period 2025-2027.

TSB has contributed 600 million in dividends to Sabadell since its acquisition

Banco Sabadell acquired the British bank specialised in mortgage lending in 2015 at a carrying value of 1.7 billion pounds. Since then, its loan book has grown from 26.4 billion to 36.3 billion pounds as at 2025 year-end, while its cost-to-income ratio has improved from 80% to 66% and its ROTE has increased from 5.3% to 12.6%. As a result, Banco Sabadell has received over 600 million euros in dividends from its subsidiary over the past decade.

As part of the transaction, other equity instruments and unmatured securities issued by TSB and underwritten by Banco Sabadell were also transferred to Santander UK for a total of 1.217 billion pounds.

Banco Sabadell has agreed not to compete in the UK market with Banco Santander for 24 months following the completion of the transaction. It will retain its UK-based branch through which it supports companies in their overseas activities and will also continue to operate in this market via its Corporate and Investment Banking (CIB) division.