The Spanish parent firm of TSB has said it is considering the sale of the UK high street bank.
Banco Sabadell, which is currently seeking to defend itself from being taken over by a major rival, said it will weigh up any potential offers for TSB.
In a regulatory filing, the banking giant said it received “preliminary non-binding expressions of interest for the acquisition of the entire share capital of TSB.”
TSB currently runs around 175 branches across the UK.
It comes a decade after Sabadell bought TSB for £1.7 billion to gain a foothold in the UK, a year after Lloyds had spun off TSB in a stock market float.
Last month, TSB saw first-quarter profits nearly double thanks to cost-cutting and improved mortgage lending ahead of April’s stamp duty deadline.
The lender posted pre-tax profits of £101.3 million for the first quarter, up from £53.4 million a year ago.
The Financial Times reported that potential bidders for TSB could include Barclays, NatWest, Santander UK and HSBC.
The potential disposal comes as Sabadell seeks to rebuff a potential hostile takeover by Spanish rival BBVA.
BBVA has launched an 11 billion euro (£9.4 billion) move to take control of Sabadell and plans to put this offer in front of shareholders in the coming months.
The potential sale of TSB is the latest in a flurry of recent dealmaking moves in the UK banking sector.
On Monday, Metro Bank shares jumped after reports it had attracted a takeover approach from investment firm Pollen Street Capital.
Meanwhile, Santander has reported pushed back bids from NatWest and Barclays to buy its UK retail bank.
