An official source confirmed to Lusa the branch closures as part of the "optimisation of the branch network and improvement of customer service," adding that no employee departures are expected at the bank's initiative.

The goal is to "concentrate larger teams in larger branches" and achieve a more efficient service, the bank explains, adding that branch closures should be limited to overlapping areas.

The bank's statement comes after being questioned about information received by industry unions affiliated with the UGT (Workers' Union) that indicated branch closures.

In a statement, Mais Sindicato, the Portuguese Financial Sector Workers' Union (SBN), and the National Union of Banking, Insurance, and Technology Workers (SBC) said they had received "various information" in this regard, prompting them to request an urgent meeting with Santander Totta's president, Pedro Castro e Almeida.

Santander Totta assured Lusa that the strategy "is not a cost-cutting exercise" and that it is a commitment to new-generation branches.

Among the solutions proposed by Santander are work cafés, a branch model that combines the services of a bank branch with a coffee shop and a co-working area.

Santander Totta added that it also has more than 300 VTM (virtual teller machines) that allow for deposits, large-value withdrawals, and many other daily operations.

At the end of June this year, Santander Totta had 4,673 employees and 327 branches, 107 more employees and two fewer branches than a year earlier.