Santander has confirmed it will keep every one of its current branches open until 2028, a commitment that also covers TSB branches. The two banks together operate 480 sites across the UK, providing a rare stay of execution for high street banking customers accustomed to year-on-year closures.
Mahesh Aditya, chief executive of Santander UK, said the decision reflected a belief that branches remain vital to the bank's future. "I see branches as an important part of our strategy and do not intend to close any additional Santander or TSB branches before 2028 at the earliest," he announced.
Branch modernisation and Work Cafes
Aditya said Santander would continue to modernise its network, including the rollout of Work Cafes – free coworking spaces designed to bring people into branches. He added that he had been "impressed" by the standard of service staff provide, and that the ambition is to pair cutting-edge digital tools with the personal touch customers still value.
The pledge marks a significant shift from the recent past. According to consumer group Which?, Santander alone has closed two-thirds of its branches since 2015, reflecting a broader industry trend that has seen thousands of bank branches disappear from British high streets.
Reaction from Which? Money
Sam Richardson, deputy editor of Which? Money, welcomed the announcement but warned that the damage had already been done. "In the last decade, there have been widespread bank branch closures across the UK, with Santander alone shutting two-thirds of its branches since 2015," he said. "While this announcement will no doubt be good news for some Santander and TSB customers, the fact remains that the worst of the damage has already been done."
Richardson's comments highlight the mixed feelings among campaigners who have fought against closure after closure, often successfully, but only after communities lost services.
Restructuring costs and further savings
The announcement came alongside Santander's latest financial results, which revealed rising restructuring costs as the bank continues to find savings. The group warned that further cuts are planned for 2026, "driven by simplification and automation of our business, and integration of TSB". That integration, following Santander's acquisition of TSB, is seen as a key factor behind the branch reprieve.
Santander also reported a significant jump in bad debt charges. The bank said these rose by £173 million due to a worsening economic outlook in 2026, a deterioration it attributes to fallout from the Iran war. In addition, the acquisition of TSB added a further £62 million of credit impairment onto its books.
Support for vulnerable customers
Amid these pressures, Santander revealed it has reached out to 146,000 customers it expects to be severely impacted by soaring energy costs. The bank said the Iran war is putting family finances under pressure, and it is proactively contacting those most at risk to offer support.
Economic outlook and interest rate forecast
The bank's results also contained an updated view on the UK economy. Santander has slightly upgraded its growth forecast for 2026 to 0.9%, but now expects interest rates to rise from 3.75% to 4% by the end of the year due to inflation pressures.
Looking further ahead, the group is pencilling in rate cuts next year, with a drop to 3.5% by the end of 2027 and a further decrease to 3.25% by the end of 2028. These projections suggest the central bank will need to balance rising prices with economic weakness.
For branch customers, the news is a reprieve, but as Which? notes, the overall trajectory of high street banking remains one of contraction. The 480 branches saved are a fraction of the number that existed a decade ago, and the industry continues to automate. Still, for those who rely on face-to-face banking, the assurance that no further closures will come before 2028 offers a measure of certainty in uncertain times.
