UPDATE 2 — TSB bank’s new CEO Debbie Crosbie on Monday outlined her three-year strategy “to restore the bank’s competitiveness through a relentless focus on better serving its customers.”

TSB said it will close 82 branches next year — 15% of its network — in a turnaround plan that aims to save £100 million by 2022 and could mean the loss of up to 400 jobs.

TSB said it will close the branches because more customers are banking online, and Crosbie said the bank may close more branches in the future.

TSB said it will invest £120 million in “digital solutions, products and services.”

Jaime Guardiola, CEO of TSB’s Spanish parent Sabadell said: “TSB brings enhanced scale and broader geographical diversification to the group, and is a key lever to improve our profitability going forward.

“The strategic plan we present today sets the stage for TSB’s future growth.

“TSB has a strong starting position and a well-defined plan to deliver all the commitments.

“I am very confident that TSB has the right team to deliver this plan and they have all the support from the group.”

Sabadell chairman Josep Oliu said in March it is possible that TSB could be merged or sold after it completes a turnaround that could take three years.

Crosbie said: “Our new strategy positions TSB to succeed in a challenging external environment at a time when we know customers want something different and better from their bank.

“With a trusted brand, modern platform, and national presence, TSB is well placed to deliver – but we need to make changes to enable us to compete.

“The plan we’re sharing today involves some difficult decisions, but it sets TSB up to succeed in the future.

“Taken together, these changes will help us to serve more customers, better, for the long-term.”