Santander has made a commitment not to shutter any more bank branches until at least 2028, which also includes those of its recent acquisition, TSB. The bank has identified 44 branches for closure this year, which will put 291 jobs at risk, leaving a total of 305 Santander and 175 TSB branches remaining in the UK. This decision was disclosed alongside the bank’s half-year results, revealing a 31% decline in pre-tax profits to £528 million for the first half of the year.
Santander has allocated an additional £179 million to address costs related to the car finance mis-selling issue, which is facing delays due to legal disputes. The bank also noted a £173 million increase in bad debt charges due to a challenging economic outlook in 2026 related to the Iran conflict and the TSB acquisition. However, Santander aims to achieve savings of at least £400 million by the end of 2028 through increased utilization of artificial intelligence (AI) and automation.
Mahesh Aditya, the Chief Executive Officer of Santander UK, emphasized the importance of branches in the bank’s strategy. He mentioned that there are currently 480 branches between Santander UK and TSB, and the plan is to provide customers with a blend of top-tier digital services and personalized assistance to establish the best banking experience in the UK. Aditya assured that no additional Santander or TSB branches will be closed before 2028, highlighting the continuous investment in modernizing the network and introducing new Work Cafés.
In a separate development, Santander recently introduced a new regular saver account offering an 8% interest rate on monthly savings up to £200. The account includes a 5% variable bonus for the initial 12 months and reverts to a 3% variable rate afterward, exclusively available to Santander current account holders with a minimum balance requirement of £1 and limited to one account per customer.
