Latest news with #HenryDuncan
Daily Record
2 days ago
- Business
- Daily Record
TSB started with small Scottish back over 200 years ago and is set for £2.65bn Santander deal
TSB, founded over 200 years ago by Reverend Henry Duncan, is set to be bought by Santander, risking the loss of one of Britain's oldest banking names. TSB, the bank born from a revolutionary idea in a Dumfriesshire hamlet more than 200 years ago, is now set to be absorbed by Spanish-owned Santander in a £2.65 billion deal that could spell the end of one of Britain's oldest banking names. The Edinburgh -based lender has been under the control of Spanish banking group Sabadell for the past decade. But with a new sale agreed, pending shareholder approval, the iconic TSB brand, with its roots dating back to 1810, could soon disappear from the UK high street entirely. The Trustee Savings Bank was the vision of Reverend Henry Duncan, a Scottish minister who wanted to offer working people an alternative to the commercial banks of the day. At the time, most banks required a £10 minimum deposit to open an account, an impossible sum for agricultural workers and domestic servants who earned around 10d (4p) per day and were often paid only quarterly. Rev Duncan launched his so-called "penny bank" in the village of Ruthwell to help locals manage their money and earn interest, even on the smallest of savings. Drawing on his experience from working in a Liverpool bank, he took those deposits and reinvested them in commercial banks, paying savers interest of around 4–5% while retaining a small margin. The model proved so successful that within five years, similar banks were popping up across the UK. By 2002, the Trustee Savings Bank concept had inspired 109 savings banks in 92 countries. Duncan's tiny operation, run just one hour a week from a cottage, was hailed as the world's first savings bank. Though the original Ruthwell bank closed in 1875 due to its remote location, the site now houses the Savings Bank Museum, which reopened last summer after a five-year hiatus. The cottage, once filled with parishioners clutching coins, now displays hundreds of piggy banks and Duncan's original desk. Duncan himself died in 1846 aged 71 after suffering a stroke, but his legacy lived on. The TSB would go through several transformations over the centuries, merging with Lloyds Bank in 1995 to become Lloyds TSB, before being spun off again during the 2008 financial crisis. The European Commission ordered the split as a condition of Lloyds' £20 billion government bailout. Sabadell later acquired TSB in 2015 for £1.7 billion. Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'. If you're curious, you can read our Privacy Notice. Now, the next chapter in TSB's long and storied history could bring its identity to an end. Santander has confirmed it 'intends to integrate TSB in the Santander UK group', though UK bosses have said it will be 'business as usual' for now. TSB's head office, Henry Duncan House on George Street in Edinburgh, is a nod to its founder, but its future under the Santander banner remains unclear. The bank currently operates 175 branches across the UK and employs 5,000 staff, while Santander runs 349 branches, a number that has steadily declined in recent years as customers move online. Tuesday's announcement has sparked fresh concerns over job losses and branch closures, with Santander already earmarking at least £400 million in cost savings as part of the merger plan.
BBC News
2 days ago
- Business
- BBC News
How Spanish-owned bank TSB has its roots in Scotland
Edinburgh-based bank TSB is set to be bought over by Santander, after 10 years with rival Spanish owner deal, which could see the TSB name disappear from UK high streets. is the latest change for the bank which was founded in Dumfriesshire in 1810, thanks to the vision of a Scottish clergyman. In 19th Century rural Scotland personal banking was unimaginable for most people due to the high deposit required at commercial banks and low earnings of changed when the Rev Henry Duncan started his "penny bank" in the hamlet of Ruthwell to give parishioners access to savings and interest for the first so the Trustee Savings Bank (TSB), said to be the first savings bank in the world, was TSB model was soon adopted around the globe to form the savings bank organisations we know today. At the time the TSB was founded, commercial banks required a minimum deposit of £10 to open an account, a sum far out of the reach of agricultural labourers and domestic servants who typically earned 10d (4p) a workers were only paid for the days they worked, and often received payments once every three Duncan based his new penny bank on business principles, encouraging them to budget and paying interest on its investors' modest savings. He had worked for three years in a commercial bank in Liverpool before taking up the ministry in Ruthwell Parish so he knew how the system worked. It is believed he took the money from Ruthwell and redeposited it into a commercial bank, where he received between 5% and 6% interest and paid out between 4% and 5%. Within five years, savings banks based on Duncan's model were operating throughout the UK, and by 2002 there were 109 savings bank organisations in 92 Trustee Savings Bank's original 18th century building closed in 1875 due to the small population of the the cottage where he opened his savings bank - initially for one hour a week on a Thursday evening - is now the Savings Bank reopened last summer after being closed for five years, now housing hundreds of piggy banks as well as Duncan's died in 1846 from a stroke, aged headquarters of TSB Bank at 120 George Street in Edinburgh is named Henry Duncan House after its founder. Since 1810 TSB has gone through a number of iterations before merging with Lloyds Bank in 1995 to form Lloyds the global financial crisis in 2008, Lloyds was forced by the European Commission to spin off the business as a separate brand after Lloyds received a £20bn eventually sold its remaining stake in TSB to Spanish organisation Sabadell in 2015 in a deal worth £ Tuesday it was announced TSB will be bought by Santander for at least £2.65bn if shareholders agree, and the rival Spanish bank "intends to integrate TSB in the Santander UK group".TSB has 175 branches in the UK and 5,000 employees while Santander has around 349 banks, but it has been shutting branches, saying more customers want to do their banking UK management said it would be "business as usual" for customers and staff, with the takeover expected to happen early next year, but the TSB name could soon be a thing of the past.
Scotsman
2 days ago
- Business
- Scotsman
Historic Scottish-founded TSB name could disappear after £2.65bn Santander swoop
'TSB is a truly special bank, run by a first-class team that delivers trusted service and support for customers, day in and day out.' Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The venerable TSB brand could vanish from UK high streets in the wake of Santander's £2.65 billion deal to buy the Scottish-founded lender, amid fears of further branch closures and job losses. Sabadell, the current Spanish owner of TSB, said last month it was considering a sale of the UK business amid efforts to stop itself being subject to a hostile takeover. Santander, also Spanish owned, confirmed that it 'intends to integrate TSB in the Santander Group' as part of the deal, which needs to be agreed at a shareholder vote. Advertisement Hide Ad Advertisement Hide Ad The move would create the UK's third largest bank by the number of personal current accounts. When combined, the two banks would serve nearly 28 million retail and business customers nationwide. TSB currently operates about 175 branches across the UK and employs more than 5,000 people. TSB operates about 175 branches across the UK and employs more than 5,000 people, while rival Santander runs 349 branches and has around 18,000 staff. Like all major lenders, both banking groups have cut their number of sites in recent years as many customers have shifted to online banking and using apps. The takeover deal will raise fears of further job cuts and branch closures across the combined group. TSB, formerly the Trustee Savings Bank, was founded by the Reverend Henry Duncan in Dumfriesshire in 1810. It retains a Scottish headquarters in the centre of Edinburgh. Advertisement Hide Ad Advertisement Hide Ad In a presentation to analysts, Santander said it plans a 'rationalisation' of the overall branch network and structure, with aims to look at 'overlaps' involving properties. It comes a decade after Sabadell bought TSB for £1.7bn to gain a foothold in the UK, a year after Lloyds Banking Group had spun off TSB in a stock market float. In May, TSB saw first-quarter profits nearly double thanks to cost-cutting and improved mortgage lending ahead of April's stamp duty deadline. Marc Armengol, TSB chief executive, said: 'TSB is a truly special bank, run by a first-class team that delivers trusted service and support for customers, day in and day out. Today's announcement represents the next exciting chapter for this successful business, as part of Santander, a highly regarded banking group. Advertisement Hide Ad Advertisement Hide Ad 'I believe this will prove to be an excellent fit for our loyal customers,' he added. Ana Botin, Banco Santander's executive chairwoman, said: 'The acquisition of TSB represents a continuing strategic commitment to our customers in the UK, offering a compelling opportunity that is financially attractive to our shareholders and aligned with Santander's long-term objectives. It strengthens our franchise in a core market through the acquisition of a low-risk and complementary business that adds to our diversification.' Santander said the transaction is expected to generate 'cost synergies' - or savings - of 13 per cent of the combined business's cost base, equivalent to at least £400 million pre-tax, with the majority realised by 2027. Santander expects to incur £520m of pre-tax restructuring costs during 2026 and 2027.
