MADRID, Oct 19 (Reuters) - Spain's Banco Sabadell
plans to speed up its cost cutting plan at British arm TSB to
complete it in two years rather than three, Chief Executive
Jaime Guardiola said on Monday.
At the end of September, TSB announced it would close 164
branches, a third of the total, and cut around 900 jobs as
lenders grapple with the economic impact of the COVID-19
"In the UK, we will likely bring forward the cost reduction
plan (...) that was intended to be achieved in three years to
two years, and complete the whole reduction process in 2020 and
2021," Guardiola told a financial event hosted by Spanish
newspaper Expansion and consulting company KPMG.
Guardiola expected to provide more details on cost cutting
at Sabadell when the bank releases its quarterly earnings at the
end of this month.
Spanish banks have gone abroad in search of higher revenues,
though Sabadell's 2015 purchase of TSB has been marred by major
The impact of the pandemic has also put the bank under more
pressure to consolidate while facing rising bad loans and low
Against this backdrop, sources told Reuters last month that
Sabadell held informal talks about a possible tie-up, including
with BBVA and Santander, though on Monday
Sabadell said it was focused on its own project of reducing
Since the beginning of the year, shares in Sabadell have
plunged more than 70%, becoming the worst-performing banking
stock on the Ibex-35.
On Monday, the stock was down 1.2%, while the Ibex-35
was up 0.3%.
(Reporting by Jesús Aguado and Emma Pinedo; editing by Andrei
Khalip and Mark Potter)