TSB brand is strong as Sabadell confirms takeover

Spanish banking group Sabadell has inherited a lot more than a stake in the UK banking market as it acquires TSB, a brand which has been in good health since its launch 18 months ago.

Sabadell confirmed its £1.7bn takeover bid for TSB today (20 March). It is not only purchasing a bank with over 600 branches, but also a brand in good health.

The TSB brand, which has origins dating back 200 years, was created as a result of Lloyd’s Banking Group having sold 631 of its branches as a European Union condition for accepting state aid.

Lloyds initially attempted to sell the branches to the Co-operative Bank, which eventually fell through and left Lloyds with only six months to establish a stand-alone brand with a lot of heritage.

TSB eventually referenced its long history by positioning the bank as a local deposit and lending bank. In 2014, the brand unveiled a series of TV adverts to emphasise its position as a ‘local bank’, with which it did very well.

Despite TSB’s unconventional launch in 2013, the bank has shown strong brand performance since its initial conception.

YouGov’s ‘Buzz’- a metric that looks at the amount of positive or negative things a consumer has heard in the past two weeks about a brand – shows that TSB is placed 8th in a list of 28.

The brand surpasses well-established banks such Lloyds, Co-operative Bank, Barclays and HSBC in ‘Buzz’ score. It falls behind Nationwide, Halifax, Santander and NatWest.

TSB’s ‘Index’ score – which looks at overall brand health and measures consumer perception of quality, satisfaction and reputation – shows that it has a score of -0.1. The brand ranks in 14th place in a list of 28.

The brand is again surpassed by Nationwide and Halifax, as well as Virgin Money. The Royal Bank of Scotland, HSBC, Barclays and Co-operative fall towards the bottom of the list.

TSB was also named as one of only two bank brands to increase value in 2014, according to the Brand Finance Banking 500 report, launched last month. The other was Lloyds.

In 2014, TSB achieved the highest growth of any UK banking brand with its value rising 21% to £507m. Brand Finance told Marketing Week that its recent marketing strategy has been key to its success as it “emphasised competitive rates and straightforwardness”.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here