Banco Sabadell completes the sale of TSB for 3.300 billion euros and activates an extraordinary dividend

 

Banco Sabadell has officially announced the sale of its British subsidiary, TSB, Banco Santander for a total amount of 3.300 millones de eurosThe transaction was finalized after receiving regulatory approvals. This strategic transaction not only generates a capital gain exceeding 300 millones de euros and over 400 puntos básicos of capital for the entity, but also enables the payment of an extraordinary dividend of 50 céntimos por acción the next 29 de mayoand reorients the bank's strategy towards its domestic market in España.

 

Financial and Strategic Impact of the Divestment in TSB

 

The sale transaction of TSB It has been closed because 2.863 millones de libras esterlinas, equivalent to 3.300 millones de eurosThis value includes the initial purchase price of 2.650 millones de libras (3.050 millones de euros) plus the tangible net book value (TNAV) generated by TSB until closing, amounting to 213 millones de libras (242 millones de eurosThis divestment has become a key move for Banco Sabadell, both for its impact on capital generation and for the redefinition of its roadmap.

 

César González-Bueno, CEO of Banco Sabadell, he valued the operation as «A major transaction that is attractive to all parties. Furthermore, it has occurred at an opportune time, allowing for the payment of an extraordinary dividend of 50 céntimos por acción and focus the bank's strategy on España, our natural market«. For its part, Marc Armengol, who until now has been CEO of TSB and will be the next CEO of Banco Sabadell, he emphasized that «We have closed a very important deal for the British financial sector. TSB It is a success story today in Reino Unido Thanks to the excellent work that the whole team has done in recent years«.

 

Profitability and Shareholder Return

 

Selling TSB not only does it inject considerable capital gains into the accounts of Banco Sabadellbut also reinforces its commitment to shareholder returns. The extraordinary dividend of 50 céntimos por acción, approved by the Junta de Accionistas Last year, in addition to ordinary dividends and share buyback and amortization programs, a total payout of approximately [amount missing] was projected. 6.450 millones de euros across 2025 y 2027This data underscores the entity's financial strength and long-term value strategy.

 

Main figures of the operation TSB:

 

Concept	Amount (Pounds Sterling)	Amount (Euros)
Initial purchase price	2.650 million	3.050 million
TNAV generated by TSB until closing	213 million	242 million
Total sale value	2.863 million	3.300 million
Capital gains generated for Banco Sabadell		> 300 million
Capital generation for Banco Sabadell		> 400 basic points

 

TSB's Trajectory and Legacy under Banco Sabadell

 

Banco Sabadell acquired TSB en 2015 by 1.700 millones de librasfocusing on its specialization in the British mortgage business. During the decade it belonged to the group, TSB It has undergone a remarkable transformation and growth, demonstrating the success of the implemented management.

 

Key indicators for improvement TSB (2015 2025):

 

• Credit book: It increased from 26.400 millones a 36.300 millones de libras.
• Efficiency ratio: It improved from 80% al 66%.
• Return on Equity (ROTE): He raised from 5,3% al 12,6%.

 

This performance has allowed Banco Sabadell perceive more than 600 millones de euros in dividends of TSB throughout this period. The operation also included the transfer to Santander UK of other capital instruments and unmatured securities issued by TSB and signed by Banco Sabadell, for an additional value of 1.217 millones de libras.

 

 

The Future of Banco Sabadell in the British and Spanish Markets

Although Banco Sabadell has committed to Banco Santander to a non-compete clause in the British retail market during 24 mesesThe entity will maintain its presence in Reino UnidoIts branch in the country will continue to support the internationalization operations of Spanish companies and will operate through its corporate banking division (CIBThis approach underscores the strategic importance of supporting foreign trade and global business, pillars of Empresa Exterior.

 

The strategic reorientation towards EspañaBoosted by the liquidity and capital released from this sale, it will allow Banco Sabadell To consolidate its position in its core market and boost its growth in an environment it knows intimately. This decision is a clear example of how international asset management and strategic divestments can optimize a bank's value proposition.

 

Key points and frequently asked questions about selling TSB

 

Why Banco Sabadell sold TSB?

Banco Sabadell sold TSB to divest from its British subsidiary, generate a significant capital gain (more than 300 millones de euros and over 400 puntos básicos (of capital), and refocus its main strategy on the Spanish market, considered its "natural market".

 

What was the final sale price of TSB and what benefits did it bring to Banco Sabadell?

The final sale price of TSB it was of 3.300 millones de euros (2.863 millones de libras). This operation generated a capital gain of more than 300 millones de euros and freed more than 400 puntos básicos of capital, also allowing the payment of an extraordinary dividend of 50 céntimos por acción.

 

What role will he/she maintain Banco Sabadell at the Reino Unido after the sale of TSB?

Despite the disinvestment, Banco Sabadell will maintain its branch in the Reino Unido to continue supporting Spanish companies in their international business and will operate through its corporate banking division (CIB), although with a non-compete clause in the British retail market for 24 months.