Santander UK has completed its purchase of TSB Bank, following regulatory approval of the £2.65 billion acquisition.

The deal was approved by the UK’s Prudential Regulation Authority on 19 March and the European Central Bank on 14 April, and was completed on 1 May. TSB is a wholly-owned subsidiary of Santander, but the two banks will remain as separate legal and regulated entities until approval is granted to integrate the two banks, which they expect to take place in the first half of 2027.

The new entity will become the third-largest banking group in the UK by current account balances, and the fourth-largest by mortgages. TSB said that the acquisition is expected to deliver enhancements for customers across the country due to the two having complementary customer bases and regional footprints.

TSB has around 5 million customer accounts, and approximately £71.5 billion in gross customer assets, comprised of £35.2 billion in customer deposits and £36.3 billion in customer lending.

“This is excellent news for UK banking, with the acquisition representing the single largest investment in the sector for over 15 years,” said Mahesh Aditya, chief executive of Santander UK. “Bringing TSB into the Santander group strengthens competitiveness in the market and is an important step in creating the best bank for customers.

“As we enter the next phase, we remain focussed on a seamless transition, and we look forward to welcoming TSB customers as we become one of the most substantial and competitive banks in the UK – a bank positioned for sustainable growth, long-term value, and genuine differentiation."

As part of the acquisition, TSB has made changes to its board, also announced Friday. David Oldfield, a retired Lloyds veteran who also sits on Santander UK’s board, is now TSB’s chair, with TSB’s chief executive and chief financial officers, as well as Mahesh Aditya, joining the board in addition.

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