Bankinter | Banco Sabadell (SAB) is considering selling its UK franchise (TSB). Sabadell has received several non-binding offers for 100% of TSB’s capital. Among the potential buyers are the main British banks (Barclays, Natwest and HSBC), as well as Santander UK. The preliminary price offered by TSB is unknown, but the press speculates that it is in the range of €2 billion to €2.35 billion.
Bankinter analysis team’s view: Neutral impact. It is logical for Sabadell to explore all strategic alternatives, but Spanish regulations prevent it from carrying out a corporate transaction while a takeover bid is in progress (duty of passivity). In any case, it should be noted that: (1) Sabadell has ruled out selling TSB on several occasions and (2) with the price range being discussed, Sabadell would obtain ~13.0% of its market capitalisation from the sale of TSB, which is similar to the subsidiary’s contribution to the bank’s results (€253 million in 2024).
The good news is that, in the event of a sale, Sabadell could obtain >€200 million in capital gains (net of taxes), which is equivalent to 7.5% of estimated 2025 BAI, according to our estimates.
