TSB Banking Group

Spanish lender Sabadell plans to sell IT crisis-hit TSB after turnaround

“The aim is that TSB enters into a process of consolidation in the future in Britain,” Sabadell’s chairman Josep Oliu said

TSB was hit by a costly IT issue in April

Spanish lender Banco Sabadell has revealed that it plans to eventually merge or sell its TSB business, which was hit by an IT meltdown earlier this year.

Sabadell’s chairman Josep Oliu said once the group returns TSB to profitability it would look at its options for the UK bank.

READ: TSB's IT meltdown costs its Spanish owner €88mln in the third quarter

“The aim is that TSB enters into a process of consolidation in the future in Britain,” he told the Expansion newspaper at an event in New York.

Oliu said Sabadell will present a turnaround plan for TSB in January, which will last for at least two years.

“Afterwards we will enter into the consolidation process,” he said.

TSB was hit by a costly IT issue in April, leading to the resignation of chief executive Paul Pester a few months later. The IT problem, which continued for months, locked thousands of customers out of their accounts online.

The system crashed when TSB migrated its online platform from its former owner, Lloyds Banking Group PLC (LON:LLOY), to a new one built by new parent Sabadell. 

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