Santander has released a statement to all TSB customers following the completion of its near £3 billion acquisition of the smaller competitor. The high street lender has now finalised the deal, marking a major shake-up in the UK banking sector.
What Santander Says
Santander posted an update clarifying what the acquisition means for TSB customers. The message on its website reads: "Santander has completed the acquisition of TSB. If you're a Santander customer, nothing changes. Your accounts, cards and the way you bank with us will stay the same for now. You don't need to take any action. If you also bank with TSB, you can continue to use their services as normal and please visit their website for more information."
TSB Customer Assets
TSB currently holds around 5 million customer accounts and approximately £71.5 billion in gross customer assets, comprising £35.2 billion in customer deposits and £36.3 billion in customer lending. TSB said existing customers need not worry about immediate changes and can continue using their products, accounts, and cards as before. Both banks say the move will benefit customers.
Scam Warning
Santander cautioned customers about potential scams, warning: "Following news like this, criminals may try to take advantage. They might contact you pretending to be from Santander or TSB and ask for your details." To guard against this, Santander reminded customers that it would never ask for your password, PIN, or One Time Passcode (OTP). It also stressed that it would never ask you to move money to a 'safe account', adding: "We won't contact you out of the blue asking for your security details." The bank concluded: "If something doesn't feel right, stop and check before doing anything" and advised users to call 159 or use the number on the back of your card or in your mobile app to verify.
Deal Details
Santander UK has finalised its £2.65 billion acquisition of TSB, following regulatory clearance from the Prudential Regulation Authority and the European Central Bank on 19 March 2026 and 14 April 2026 respectively. TSB announced that the transaction signals the beginning of uniting two established banking brands to form the third largest bank by current account balances and fourth largest by mortgages, pledging to become the best bank for customers in the UK. The statement added: "With complementary customer bases and regional footprints, the acquisition is expected to deliver enhancements for customers across the UK – investing more in innovative products, digital services and support for customers."
Cost Savings and Leadership
Santander aims to achieve cost savings of at least £400 million following the takeover. Mahesh Aditya, Santander UK's new chief executive, said: "This is excellent news for UK banking, with the acquisition representing the single largest investment in the sector for over 15 years. Bringing TSB into the Santander group strengthens competitiveness in the market and is an important step in creating the best bank for customers." Nicola Bannister, who became chief executive of TSB on Friday, said: "Today marks a significant new chapter for TSB as we become part of Santander. I look forward to leading TSB as we combine the very best of these two great businesses."
