TSB profits drop 44%

23 July 2015

TSB bank TSB - your new bank that is over 200 years old - have reported a 44% drop in profits in the first-half of their financial year.

So what's the craic? Well, they said that their statutory pre-tax profit for the six months (to 30 June) weighed-in at £23.2m compared to £41.7m in the previous half-year, and one of the things that hurt them was the takeover by Sabadell.

TSB's statement said: "Lower average loan balances and the recognition of the full-year Financial Services Compensation Scheme levy charge of £14.8 million in H1 (first half) 2015. Statutory profit before tax was further reduced by Sabadell transaction related costs."

That said, the bank's chief executive, Paul Pester, is bullish, saying that TSB is going "from strength to strength". He pointed out that the bank is delivering a 6.7% share of all new and switching bank accounts in the last quarter, which is nice. They also launched a new mortgage broker service, which will coin it in for them.

Pester added: "Customers are really starting to see TSB as a destination for their mortgages, making us one of the fastest growing mortgage providers in the UK."

"The completion of the Sabadell Group's acquisition of TSB at a premium of over 30% to our IPO share price is recognition of the excellent progress and great potential of the Bank. We remain unwavering in our mission of bringing more competition to UK banking and, with the extra firepower of Sabadell behind us, we look forward to accelerating our growth plans and continuing to take on the big banks that have had a stranglehold on the UK market for far too long."

TOPICS:   Banking

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