TSB begins ‘new chapter’ as it returns to profit
TSB said it has begun a “new chapter” following last year’s IT meltdown, as it returned to profit in the first half.
The bank reported a statutory profit before tax of £21.1 million in the six months to the end of June, versus a £107.4 million loss in the same period last year.
It came as TSB tried to move on from last year’s IT meltdown, which cost it millions in customer compensation and fraud losses.
An additional £36.2 million cost relating to the debacle was recorded in the period, adding to a bill of £330 million spent in 2018.
New boss Debbie Crosbie, who replaced Paul Pester in the wake of the scandal, said the business has “begun a new chapter”.
“We are beginning to see the benefits of our new platform for our customers, including a faster mortgage applications process and the introduction of new digital capabilities like identity verification on our mobile app,” she said.
Total customer deposits increase by £700,000 in the period to £29.8 billion, thanks to a successful ISA season.
Mortgages, excluding the closed Whistletree portfolio, returned to growth.
Stripping out the IT costs, management profit was down 28.9% to £57.6 million, due to pressure on mortgage margins and tighter regulations.
Ms Crosbie added: “My priority, along with my new executive team, will be to renew our focus on our customers and create our three-year strategy.
“This work is well under way, and we will share full details later this year.
“These results show we’re already on our way to building on our strengths to shape TSB’s future success.”