Santander Uk Plc — TSB Banking Business Transfer to Santander UK

(LSE:SANB) Santander UK and TSB applied to the High Court under Part VII of the Financial Services and Markets Act 2000 to transfer, via a banking business transfer scheme, substantially all of TSB’s business to Santander UK, excluding certain assets and liabilities. The court hearing for the proposed transfer is scheduled for 15 February 2027. If the court approves the scheme, the effective transfer date will be 22 March 2027. Affected parties have the right to object to the transfer. TSB will submit a summary of objections to the Court, the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA). The application involves a significant restructuring of TSB’s business operations, with most of its business being transferred to Santander UK. The process is governed by the Financial Services and Markets Act 2000, specifically Part VII, which regulates banking business transfer schemes. The transfer excludes certain assets and liabilities, though the specific exclusions are not detailed in the announcement. The High Court is the approving authority for the scheme. The PRA and FCA are also involved in the regulatory oversight of the process. The timeline for the process includes the application date of 30 October 2026, the court hearing on 15 February 2027, and the proposed effective date of 22 March 2027. The announcement provides a formal notification to stakeholders about the proposed transfer and the opportunity to object. The summary of objections will be formally submitted to the relevant authorities as part of the process. The announcement does not specify the financial terms or the value of the business being transferred. The process is subject to court approval and regulatory oversight.

3rd Quarter Results

(LSE:SANB) Santander UK Group Holdings plc reported its Quarterly Management Statement for the nine months ended 30 September 2026. Profit before tax for 9M-26 decreased by £71m to £1,158m compared to £1,229m in 9M-25, mainly due to a provision charge in Q1-26 relating to historical motor finance commission payments and higher restructuring costs, partly offset by TSB's contribution to profit before tax of £96m. Net interest income increased 17% to £3,854m, with Banking NIM rising to 2.31% from 2.23% in 9M-25, mainly due to the inclusion of TSB's higher NIM. Operating expenses rose 8% to £2,122m, reflecting the inclusion of TSB's costs, partly offset by ongoing simplification and automation. The cost-to-income ratio (CIR) improved to 52% from 57%, due to income growth and increased operational efficiency. Credit impairment charges increased by £192m to £342m, mainly due to the acquisition of TSB, including a day 1 charge of £62m, and a deterioration in the economic outlook. Restructuring and specific provisions rose by £361m to £495m, driven by a £179m increase in the provision charge in Q1-26 for historical motor finance commission payments and higher restructuring costs. Customer loans increased by £39.7bn to £240.3bn, with mortgage loans rising to £205.6bn, mainly due to the inclusion of TSB and higher gross mortgage lending of £23.4bn in 9M-26 versus £17.9bn in 9M-25. Customer deposits increased by £39.0bn to £229.2bn, with more than 400,000 new current accounts opened, driven by successful campaigns and incentives. The loan-to-deposit ratio (LDR) remained at 105%. Asset quality remained strong, with a Stage 3 ratio of 0.90%, down 27bps from December 2025. The CET1 capital ratio was 14.0%, down from 15.7% at December 2025, and the UK leverage ratio was 4.8%, down from 5.1%. The liquidity coverage ratio (LCR) increased to 175% from 166%. The 2026 funding plan was completed, with £10.8bn in term issuance in 9M-26. The integration of TSB is progressing, with nearly 1,000 TSB colleagues in central functions transferring to Santander UK plc on 1 October 2026. The company reconfirmed its targets of increasing RoTE to 16% and achieving cost synergies of at least £400m by the end of 2028. The Part VII business transfer application process for TSB is progressing, with a directions hearing expected in November 2026. The company continues to monitor risks from geopolitical events and the potential impact on inflation.

New members to the Executive Committee

(LSE/AIM:SANB) Santander UK has announced four new appointments to its Executive Committee as it continues the integration of TSB. Tom Ranger will be appointed as the new Chief Financial Officer, subject to regulatory approval, with effect from 1 October 2026, succeeding Angel Santodomingo. Steve Affleck has been appointed Chief Accounting Officer with immediate effect, while Michael Christodoulides will join as Chief Compliance Officer from 1 November 2026, and Iñaki Perkins has been appointed Head of Cards & Payments. Angel Santodomingo, CFO since 2023, will take up a role at Banco Santander in January 2027 and will resign as an Executive Director of Santander UK Group Holdings plc and Santander UK plc with effect from 31 October 2026. Banco Santander had €1.4 trillion in total funds, more than 176 million customers, 6,600 branches, and 185,000 employees in the first quarter of 2026. The new structure aligns Santander UK's finance function with the Group model and provides greater focus and accountability across its leadership. The company projects that the integration of TSB creates a significant opportunity to build a cards and payments proposition that is central to customers' financial lives.

Quarterly Management Statement - Q1 2026

Santander UK Group Holdings plc released its Quarterly Management Statement for Q1 2026, reporting a profit before tax of £202m, down from £358m in Q1 2025, mainly due to a £179m provision charge related to historical motor finance commission payments. Customer loans increased to £202.1bn and customer deposits to £190.5bn, with mortgage loans rising to £170.2bn. The company highlighted ongoing investment in technology, AI deployment, and the imminent completion of the TSB acquisition, described as the largest inward investment in the UK banking sector in over 15 years. Operating expenses fell by 7%, and the CET1 capital ratio remained stable at 15.7%. The outlook anticipates continued net lending growth and further cost efficiencies in 2026.

SANTANDER UK PLC