Santander UK vows not to shut more branches before 2028
Santander UK has pledged not to shut any more branches across its network and those of recently-acquired rival TSB before 2028, despite plans to cut costs further over the rest of the year.
The bank's new head Mahesh Aditya said he saw branches as an "important part of our strategy" as he unveiled the commitment, which will see it maintain 305 Santander and 175 TSB branches across the UK for nearly another 18 months at least.
But the promise comes after Spanish-owned Santander UK announced another wave of branch closures at the start of the year, with 44 sites earmarked to be axed, putting 291 jobs at risk.
The lending company also continues to cut costs across the business as it ramps up the use of artificial intelligence and automation, and is targeting at least £400 million of savings by the end of 2028 following the £2.65 billion TSB acquisition, which completed in May.
Aditya, who took over from former chief executive Mike Regnier on March 1, said: "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 Cafes."
The pledge came in half-year results showing profits slumped by almost a third after its near-GBP180 million hit in the first quarter for the motor finance scandal, and due to higher bad debt and restructuring charges.
The high street lending firm – which is owned by Banco Santander – reported a 31% fall in pretax profit to £528 million for the six months to June 30.
This followed an extra £179 million set aside in the first three months of the year to cover costs of the motor finance mis-selling saga, where millions of deals were sold with hidden commission from a range of UK lenders.
Santander also saw restructuring costs rise as it continued to make savings across the business, with the group warning over further cuts to come in 2026 "driven by simplification and automation of our business, and integration of TSB".
The Spanish-owned bank said bad debt charges rose by £173 million due to a worsening economic outlook in 2026 amid the Iran war fallout and following its acquisition of TSB, which added an extra £62 million of credit impairment onto its books.
Santander also revealed it had reached out to 146,000 customers it expects to be severely impacted by soaring energy costs as the Iran war puts family finances under pressure.
Banco Santander SA shares were 1.0% lower at EUR11.78 each on Wednesday morning in Madrid.
By Holly Williams, Press Association Business Editor
Press Association: Finance
source: PA
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