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Meddings to leave

TSB chairman steps down after sale called off

TSB Edinburgh

TSB head office in George Street, Edinburgh (pic: Terry Murden)

TSB chairman Richard Meddings is to step down after its Spanish parent Sabadell decided to postpone selling the British subsidiary.

Mr Meddings, who became chairman in February 2018, will continue to lead the board while the search for a successor takes place.

TSB said Mr Meddings had made it clear he did not want to stay on a chairman for a full second term, but remained in post in light of last year’s merger talks involving Sabadell and a strategic review that may have led to the sale of Edinburgh-based TSB.

However, following Sabadell’s announcement last weekend that no sale process will be initiated in the near future, he has decided to step down.

The task for new Sabadell chief executive Cesar Gonzalez-Bueno will be hitting a modest profit this year which would make TSB more attractive to a suitor such as Virgin Money UK, potentially creating a larger Scotland-based bank.

Analysts reckon TSB might be worth £900 million, compared with £1.7 billion that Sabadell paid in 2015 soon after the bank had been demerged from Lloyds Banking Group.

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