Santander UK Freezes Branch Closures Until 2028 as Half-Year Profits Fall Sharply
Santander UK Freezes Branch Closures Until 2028 as Half-Year Profits Fall Sharply #
Santander UK’s newly installed chief executive has pledged to keep all of the bank’s branches open until at least 2028, covering both its own network and those inherited through its acquisition of TSB, as the lender reports a sharp fall in first-half profits.
Mahesh Aditya, who took over as CEO, announced that the bank will maintain all 480 of its UK branches, comprising 305 Santander sites and 175 TSB locations, through the end of 2027 at minimum. Aditya said he sees physical branches as “an important part of our strategy” and has no intention of closing any additional locations from either brand before 2028 at the earliest.
The pledge also includes a commitment to continue investing in modernising the branch network and to roll out further so-called Work Cafes (the bank’s hybrid café-and-banking format) across the estate.
The moratorium on closures follows a significant cull earlier this year, when Santander UK announced 44 branch closures that put 291 jobs at risk. Once those shutdowns are complete, the combined 480-branch footprint will represent what remains of the network under the current commitment.
Santander officially completed its £2.65 billion acquisition of TSB in May, and integration of the two brands is under way. Aditya said the bank’s ambition is to combine strong digital capabilities with the in-person service valued by customers who prefer branch banking.
The branch announcement accompanied half-year financial results showing a 31% fall in pre-tax profits to £528 million for the six months ending 30 June. The decline was driven largely by a £179 million provision set aside in the first quarter to cover potential liabilities from the UK motor finance mis-selling scandal, in which hidden commission was paid on millions of car loan deals. Bad debt charges also climbed by £173 million, attributed to a worsening economic outlook and the impact of absorbing TSB’s loan book.
Despite the pressure on profitability, management said the bank is pressing ahead with a cost-reduction drive, targeting at least £400 million in savings by the end of 2028 through increased use of artificial intelligence and automation. The bank cautioned that further restructuring charges are expected in the second half of the year as efficiency programmes accelerate.
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