Media reports, initially starting in The Financial Times, say that Sabadell received preliminary non-binding expressions of interest for TSB on Monday, and that it will assess any potential binding offers.
The Financial Times report suggests the Spanish Bank is working with advisers to sell the UK high street bank and has been in contact with bidders as it looks to combat a hostile takeover approach from BBVA.
The media report suggests that the sale could generate around £1.7bn-2bn for Sabadell.
Interested bidders are expected to submit offers this month for TSB, the report added.
Sabadell bought TSB in 2015 as part of plans to expand its global reach and diversify.
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According to TSB’s latest financial results for 2024, its statutory profit before tax came to £290.4m and its balance sheet “remains resilient” with a Common Equity Tier 1 Ratio of 15.4%.
The firm also reported growth in loans and advances to customers, rising 0.2% year-on-year, and customer deposit growth of 0.8% annually.
There has been a flurry of activity in the UK banking sector, with a Shawbrook shareholder allegedly approaching Metro Bank for a takeover and OneDome slated to buy Better.co.uk.
