BBVA and Sabadell UK takeover: I would merge TSB with Atom

Peyo Belaustegigoitiaresponsible for BBVA Spain assured that the triumph Takeover bid (OPA) on Sabadell Bank will not make changes to its share in Great Britain, Atom Bankand its activities will be compatible with a subsidiary of a Catalan bank, TSB. This was announced on Wednesday at a seminar organized this week by the Association of Economic Information Journalists (APIE) and the International University of Menendez Pelayo (UIMP) and attended by OKDIARIO.

“We participate in Atombank and it’s great compatible with TSB” if the operation is successful, said the head of BBVA. Thus, Bank of Bilbao will continue to operate in the British market and will be joined by one of Jewelry from Banco Sabadell, TSB.

BBVA’s hostile takeover bid for Banco Sabadell would involve the acquisition of the Catalan entity’s UK subsidiary. TSB Bank. If the income of this industry were added to the income Atom Bankthe company from Bibay will increase its turnover by 1659.42% in pounds sterling. Therefore, this operation will mean diversifying investments and giving more importance to another currency.

Moreover, TSB is one of Sabadell’s big bets. The Catalan company assured that it plans Protect yourself future reduction in interest rates through European Central Bank (BCE) from income generated by its UK subsidiary.

“Atombank is perfectly compatible with TSB.” Peyo Belausteguigoitia, head of BBVA Spain.

It is this move by Sabadell that could become one of the main reasons for the BBVA takeover bid. The organization that presides Carlos Torres You can see the TSB as a tool that also allows you to protect yourself from fluctuations caused by the decisions of the monetary authorities.

BBVA in the United Kingdom

In accordance with annual financial statements TSB, a subsidiary of Sabadell, earned a total of £1,158.4 million in 2023, representing approx. €1,345.95 million To change. However, Atombank achieved only one thing invoicing in the amount of 65.84 million pounds, which is approximately 76.5 million euros.

Atom Bank operates as a retail bank in the UK and operates digitally only. The organization has no branches but is solely involved in online business, which it has been a pioneer in the UK market.

However, TSB has over 220 branches and ended the first quarter of 2024 with net profit per person – 38 million pounds (44 million euros), although in annual terms this figure was 30.7% lower. In turn, the positive contribution to the Sabadell accounts amounted to 46 million euros, 14.6% less, but still a significant amount.

Despite a decrease of 14.6% TSB’s contribution to Sabadell In interannual terms, in quarterly terms it increased by 34.8%, since in the fourth quarter the necessary reserves were recorded for restructuring costs in the subsidiary.

Closing of offices

This restructuring will consist, among other things, of the dismissal of 250 workers and closure of 36 offices in the UK, this is part of an adjustment plan that the financial institution already announced in February when publishing its annual reports.

However, BBVA assured that the takeover proposal would not worsen the situation and would not mean that close branches. When asked by OKDIARIO, Belausteguigoitia assures that OPA does not intend to degrade the services provided by both organizations in rural world. At the same time, the head of the bank assures that one of the bank’s tasks is to strengthen its SME (small and medium) agricultural enterprises.

“Financial structures of Spain throughout 2021 restructuring strong, especially closing of offices“And today this is not one of the much less serious aspects of our potential operation,” says the head of a bank in Spain, hinting at a takeover bid for BBVA.

Accordingly, BBVA asserts that in the event of a takeover there will be no such changes, no closure of branches, no changes to the activities carried out by both companies in the United Kingdom. Moreover, TSB is presented as one of the best treasures of Banco Sabadell for the Bilbao enterprise.