TSB Bank has plunged to a £204 million loss after income was hit by the Covid-19 pandemic, after a rise in customer lending was offset by impairments, restructuring costs and reduced consumer spending.
The Spanish-owned high street bank said it dived to the loss, from a £46 million pre-tax profit in the previous year, after the weak economic outlook resulted in a £164 million impairment.
TSB said it saw total income fall by £90.1 million, or 9.1%, to £894.8 million for 2020, after it was affected by the pandemic and restrictions.
It said this was also driven by reduced overdraft income, lower interest rates and a fall in consumer spending.
The group has also reported that restructuring costs more than doubled to £90.6 million for the year.
— TSB News (@TSB_News) February 1, 2021
TSB axed 93 branches last year as part of its continued transformation plan, with around 600 employees affected as part of this process.
In September, the group announced plans to close another 164 branches in 2021, with around 900 staff set to be made redundant.
The group saw “record” lending growth during year, rising by 7.2% to £33.3 billion as the stamp duty holiday sparked mortgage growth and business lending was buoyed by the Bounce Back Loan Scheme.
It also reported a 13.9% jump in customer deposits to £34.4 billion as many people saved because consumer spending was constrained.
TSB chief executive Debbie Crosbie said: “TSB’s underlying performance is much improved.
“We’re ahead of plan in delivery of our strategy and have relaunched our brand, all of which sets us up well for the future.
“However, the impact of the pandemic and the additional cost of restructuring overshadows our financial result for the year.
“Our priority going forward is our growth strategy, delivering exceptional customer experience and returning to profitability.”