Spanish banking group Banco Sabadell is reportedly planning to fast-track its cost-cutting drive at its British retail banking subsidiary TSB Bank.
Banco Sabadell CEO Jaime Guardiola said that it will conclude its cost-cutting plan at TSB within two years, Reuters reported.
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Initially, Sabadell had planned to implement the cost-cutting measures in three years.
Last month, TSB Bank announced that it will cut around 900 jobs as part of plans to close 164 of its high street bank branches.
These cost-cutting measures come as a result of the impact of the Covid-19 pandemic on the UK banking industry, the report added.
In a financial event hosted by Spanish newspaper Expansion and consulting company KPMG, Guardiola said: “In the UK, we will likely bring forward the cost reduction plan that was intended to be achieved in three years to two years, and complete the whole reduction process in 2020 and 2021.”
The Spanish lender’s boss is expected to provide additional details on the cost cutting at the end of this month, when it releases its quarterly results, noted Reuters.
To bolster its revenues, Banco Sabadell had bought TSB back in 2015. The retail bank’s reputation is currently tarnished by major technology glitches.
This, and the pandemic, has strained the lender with rising bad loans and low interest rates, pressurising it to consolidate its business.
As a result, Banco Sabadell entered into informal discussions with Spanish lenders including BBVA and Santander, for a possible tie-up.
However, the bank said that its primary focus remains on its own project to reduce the costs.
