(Bloomberg) -- Banco Sabadell SA has named its chief operating officer to run its UK unit TSB, whose future with the lender is unclear if Sabadell gets taken over.
Marc Armengol will replace retiring Robin Bulloch as chief executive officer of TSB, Sabadell said in a release on Friday. The decision to appoint Armengol was formally taken by TSB’s board.
Sabadell is fighting to stay independent after larger rival BBVA launched a takeover attempt in May. Analysts have said that a decision to sell TSB after a potential acquisition of Sabadell would allow BBVA to improve its offer.
The leadership of BBVA, whose formal name is Banco Bilbao Vizcaya Argentaria SA, has so far said it’s “too early” to discuss its plans for TSB after a potential deal.
“TSB is part of Banco Sabadell’s present and future,” Sabadell CEO Cesar Gonzalez-Bueno said in the statement on Friday.
BBVA previously tried to buy Sabadell in late 2020 but the talks collapsed over pricing. Sabadell subsequently considered selling TSB, Bloomberg reported at the time.
BBVA’s bid hasn’t received necessary approvals from all regulators yet, a process that will take at least a few more months. The UK’s Prudential Regulatory Authority has already given a green light.
Elena Carrera will succeed Armengol as operations head at Sabadell, according to the statement.
Armengol has been member of TSB’s board of directors since 2022, according to the UK unit’s website. He joined the Spanish bank in 2002.
TSB reported net income of £138 million ($175.4 million) in the first nine months of this year, a drop of about 10% on the same period in 2023, according to Sabadell’s last earnings statement. The Spanish lender expects TSB’s profitability to rise next year.
(Updates with context on prior considerations to sell TSB in sixth paragraph.)
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