Banco Sabadell said on Friday that it plans to sell TSB, following the IT meltdown earlier this year. 

A spokesman for the Spanish lender said that the group will present a plan to turn TSB around after the technology failure faced this year cost the group around €320 million (£285.16 million).

Josep Oliu, the chief executive of Banco Sabadell, said: “The aim is that TSB enters into a process of consolidation in the future in Britain. We will need at least two years for this. Afterwards, we will enter into the consolidation process.”

The IT meltdown, which occurred in April, left thousands of customers out of their accounts and continued to cause issues months later. The former TSB chief executive Paul Pester stepped down in September. 

“Paul and the board have therefore agreed that this is the right time to appoint a new chief executive for TSB. Our goal is, therefore, to allow a full search to commence, without any distractions, enabling TSB to build for the future,” said Richard Meddings, the new executive chairman.

Shares in Banco Sabadell (BME: SAB) are currently trading +0.48% at 1,06 (1304GMT).