Spanish financial group Sabadell is exploring a sale of its UK bank TSB amid its efforts to fight off an €11 billion hostile takeover approach from rival BBVA.

That’s according to a report in London newspaper The Financial Times.

Sabadell is working with advisers to examine a sale of TSB and has been in contact with potential bidders, people familiar with the matter told the newspaper.

Sabadell kicked off the potential sale process after it received unsolicited interest in TSB from multiple parties.

Bloomberg reported that Sabadell said in a regulatory filing that it has received “preliminary non-binding expressions of interest for the acquisition of the entire share capital of TSB” and that it will “assess any potential binding offer” that it may receive.

Potential bidders for TSB could include Barclays, NatWest, Santander UK and HSBC.

TSB last year reported pre-tax profits of £285 million on income of £1.14 billion.

The bank has about 5 million customers in the UK.

Last month, TSB reported a statutory profit before tax of £101.3 million for the first quarter of 2025 — up 89.7% from £53.4 million in Q1 of 2024, and up 7.1% from £94.6 million in Q4 of 2024.

TSB said the year-on-year increase was driven “by higher income, supported by some one-off items, as well as lower costs.”

Total customer lending grew £100 million to £36.4 billion from 2024 year-end, driven by higher mortgage lending.

Total customer deposits remained broadly unchanged at £35.1 billion.