High street bank TSB says it will cut jobs and close branches this year.
The lender’s Spanish owner Sabadell announced a £29m restructuring plan on the same day that Deutsche Bank revealed it will axe 3,500 roles.
Banks have been boosted by high borrowing costs, enjoying soaring profits and shareholder payouts. But central banks including the Bank of England are expected to cut borrowing costs this year.
That will reduce the amount of interest lenders rake in on mortgages and other loans.
And investment banks such as Deutsche have been hit by a lack of dealmaking.
Job cuts: TSB’s Spanish owner Sabadell announced a £29m restructuring plan on the same day that Deutsche Bank revealed it will axe 3,500 roles
British banks, including Barclays and Lloyds, have accelerated cost-cutting lately.
Last week Lloyds said it will cut 1,600 jobs and in November Barclays said it could axe up to 2,000 to save £1billion.
Almost 200 bank branches are set for closure this year and 645 were shut in 2023 as more customers switch to online banking.
Asked whether TSB’s restructuring would involve axing staff and branches, Sabadell boss Cesar Gonzalez-Bueno said: ‘It will include both.’
TSB reported a 30 per cent jump in profit in 2023, up from £183.5million to £237.2million, and will pay Sabadell, which bought it for £1.7billion in 2015, a £120million dividend.
The bank did not confirm how many jobs will be lost or how many branches are set to close.
A TSB spokesperson said: ‘We have been clear about our focus on reducing costs, but as with any announcements about changing how we operate, we always consult with our colleagues first.’
At the end of last year, TSB had 5,426 workers, down from 5,482 in 2022, and the number of branches fell from 220 to 211.
Meanwhile Deutsche yesterday said it will axe 3,500 roles as it reported a 30 per cent drop in fourth quarter profit.
It plans to cut 4 per centof its total headcount by the end of next year to cut £2.1billion of costs to boost profits.
Deutsche Bank employs around 90,000 people globally.
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