And so the Spanish-based bank Santander has now completed its grasp over the poor old TSB, founded in Scotland by the Reverend Henry Duncan, minister in the parish of Rothwell, near Dumfries, in 1810.

In later years, the Trustee Savings Bank has been left to wither and rot. At one time, it had a larger presence in Scotland’s towns than the Royal Bank of Scotland, Bank of Scotland and Clydesdale Bank, but its branch network is a mere shadow of its footprint of the late 1990s. This is understandable because banking habits were changing and transactions moved into the digital domain, but TSB was always the bank of the working-class saver, a place which cultivated the thrifty and the promise of a yearly dividend.

Most Scottish children of a certain age where given a savings book, opened by a granny, grandpa or auntie, from the likes of the Edinburgh Savings Bank or the Glasgow Savings Bank which then joined the TSB. The image on the front was a child on stepping stones of pennies. It was intended as a repository for saving for the nicer things in life.

From a Scottish point of view, it is a very sad ending for this venerable organisation which led to the creation of the massive Trustee Savings Banking movement. The ideals and values were sold down the river by an Act of Parliament in 1985, which forfeited the annual dividends to members for a charitable arrangement guaranteeing an annual payment for good causes.

This act allowed TSB to join the London Stock Exchange as a listed bank.

Of late, TSB has been three meaningless initials, another aimless business, rather than a vital part of society’s fabric which had its deepest roots in working communities, helping in the alleviation of poverty and the encouragement of saving.

TSB was a junior part of the Lloyds Banking Group, becoming mired in the banking collapse which destroyed the Royal Bank of Scotland and the Bank of Scotland. It was wounded during the Global Financial Crisis in 2008, as the organisation accelerated the closure of branches across Scotland.

Once a standalone Scottish division, Lloyds TSB Scotland became a neutered part of Lloyds Banking Group, and a rather forlorn organisation, drifting along then taken over by another Spanish bank, Banco de Sabadell, based in Alicante. The Spaniards messed up the transition, the integration was a failure, and so many TSB accounts were impacted. Those with business accounts deserted on mass to the newer more reliable banks. In recent years, there has been little investment in products and appalling savings rates that were hardly ever in the Best Savings listings.

All very sad. Not too long ago, in 2006, when Dame Susan Rice, was running the Scottish bank, Lloyds TSB Scotland, it appeared for a will to have a vision and purpose. It delivered its own results and invested in Scottish businesses, and was at the forefront of its support for the London 2012 Olympics bid. There was a hint of vitality.

Back in 1985, four charitable trusts across the geographies of the UK were created when the Trustee Savings Banking Group was floated on the stock market. Each year one per cent of the bank’s profits were to be given to the foundations. The Lloyds TSB Foundation for Scotland, a standalone organisation, proudly made its own charitable decisions. In 2009, there was a rather nasty spat between the Lloyds Banking Group in London and the trustees of Lloyds TSB Foundation for Scotland. The corporate bullies down south, and this is not an exaggeration, wanted Lloyds to ‘align its charitable giving’ to causes that suited the commercial bank. This was never in the spirit of the original merger, argued the Scots. The late Sir Angus Grossart, who had been involved with the original deal in 1985, admirably stood up for the Lloyds TSB Foundation for Scotland, which was then rebranded in 2017 as the Corra Foundation.

In early 2010 Lloyds Banking Group gave notice on the ending of the agreement and the final payment was received in February 2018. The losers were many charities in Scotland.

So the Prudential Regulation Authority and the European Central Bank have approved the acquisition. Santander UK has completed the acquisition of TSB. For Santander UK customers, there is no change. TSB will continue to operate as a separate bank under its own brand for now. But for how long?

Mahesh Aditya, Santander’s chief executive officer, said: “The completion of the TSB acquisition follows regulatory approval. The acquisition represents the single largest inward investment in the UK banking sector for over 15 years and underlines Banco Santander’s commitment to the UK. The deal is expected to accelerate Santander UK’s transformation and enhance competition in the UK, benefiting both customers and shareholders.”

 On 1 July 2025, Santander announced that it reached an agreement to acquire 100 per cent of TSB Banking Group from Banco de Sabadell with a valuation of £2.65bn plus growth in tangible net assets up to the date of completion of the acquisition, in an all-cash transaction.

Sabadell shareholder approval was given on 6 August 2025. This transaction involves acquisition of £34bn of mortgages and £35bn in customer deposits. The two banks will serve nearly 28 million retail and business customers nationwide, giving TSB customers access to Santander’s international networking and allowing them to benefit from the Santander UK group’s leading technology platforms.

Banco Santander is one of the largest international investors in the UK financial services industry, having acquired and integrated Abbey National plc in 2004 and both Alliance & Leicester plc and the Bradford & Bingley savings business in 2008.  It says it has proven track record in successful banking platform migrations. Customers will be glad to hear this.

 By integrating technology across Santander UK and TSB, Banco Santander expects to unlock substantial operational efficiencies and support long-term profitability through a simplified, scalable digital banking model.

“We are fully committed to ensuring a seamless integration following completion of the acquisition, by leveraging our market leading technology and significant experience. Maintaining the highest levels of service for customers across both banks will be a key priority. We look forward to welcoming our new colleagues from TSB, and we will support all colleagues through the transition as we invest in building a stronger bank for the future,” says the CEO.

The spirit of Henry Duncan is pretty much over. The wonderful idea of a trustee savings banks, invented in Scotland and exported as a movement around the world, has gone.