Santander has promised not to close any additional bank branches before 2028, including those of its recently-acquired rival TSB. The Spanish-owned bank officially completed its £2.65 billion acquisition of TSB in May this year.
However, Santander has already earmarked 44 branches to be axed this year, putting 291 jobs at risk. Once these closures are complete, there will be 305 Santander and 175 TSB branches left across the UK.
Half-year results and financial impact
The branch update came as part of its latest half-year results, where Santander reported a 31% fall in pre-tax profits to £528 million for the six months to June 30. The bank revealed earlier this year that it had set aside an extra £179 million to cover costs of the car finance mis-selling scandal, which is currently delayed due to legal challenges.
Santander also said its bad debt charges rose by £173 million due to a worsening economic outlook in 2026 amid the Iran war, and following its acquisition of TSB.
Savings and AI investments
But the bank plans to make at least £400 million of savings by the end of 2028 as it ramps up the use of artificial intelligence (AI) and automation.
Mahesh Aditya, Chief Executive Officer at Santander UK, said: "Santander UK and TSB have 480 branches and, as I’ve travelled across the UK over the past few months speaking with branch colleagues, I have been impressed with the excellent service they provide to customers who choose to bank with us that way. As we integrate TSB with Santander UK, our ambition for customers is to combine leading digital services with the personal support they value, helping us to create the best bank for customers in the UK. I see branches as an important part of our strategy and do not intend to close any additional Santander or TSB branches before 2028 at the earliest, alongside our continued commitment to invest in modernising our network and to introduce new Work Cafés."
New regular saver account
Santander launched a new regular saver this month, paying 8% on savings of up to £200 a month. The account includes a 5% variable bonus for the first 12 months – after this, it reverts to a variable rate of 3%. It is available to all Santander current account customers. The minimum balance for the regular saver is £1, and Santander said the account is limited to one account per customer.
