Bank also outlines cost savings and network review following TSB acquisition
Santander UK is preparing for a change of leadership and a review of its branch network following its £2.65 billion acquisition of TSB, a move that will create one of the UK’s largest retail and mortgage lenders.
Mike Regnier, chief executive of Santander UK, has said he will leave his role by the end of March 2026, shortly after the completion of the TSB takeover. His successor will be responsible for overseeing the integration of the two businesses, including branch rationalisation and headcount reductions.
The bank has indicated that overlapping locations are likely to close and roles may be cut as systems and operations are combined. Regnier has previously made clear that there would be “no point having two branches in the same town serving the same customers”, pointing to a consolidation of the physical network.
Santander is understood to have shortlisted two internal candidates for the top job: group chief risk officer Mahesh Aditya and Enrique Alvarez Labiano, who leads Santander UK’s retail and business banking operations.
The new chief executive will also have to manage the ongoing impact of the UK car finance mis-selling review, which has affected several large lenders. The issue has already led Santander to delay publication of its UK third-quarter results.
The bank has been critical of an £11 billion redress scheme designed by the Financial Conduct Authority to compensate borrowers who were mis-sold car finance between 2007 and 2024. The scrutiny of its UK operations comes after a period of market speculation that Santander might withdraw from the UK, rumours denied by group executive chair Ana Botín.
Instead, in summer 2025, Santander agreed to acquire TSB from its Spanish owner, Sabadell, outbidding a rival proposal from Barclays. The combined group is expected to become the third-largest UK bank by current account balances and the fourth-largest by mortgage book, serving around 28 million retail and business customers.
At the time the deal was announced in July, TSB had about 5,000 employees and 175 branches, while Santander UK operated 349 branches and employed around 18,000 staff. Santander has said it plans to cut about 13% from the combined cost base of the two UK banks.
Regnier has previously indicated that the targeted savings will be achieved through a range of efficiency measures in areas such as IT and back-office functions, as well as a review of the branch footprint.
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