Pester pledged to more competition

TSB exceeds target for luring customers from other banks

TSB - local bankingTSB exceeded its target of luring more than 6% of all customers opening or switching their bank account.

It attracted 6.7% in the last three months, making it the sixth successive quarter above target, according to its final statement before it becomes part of Spanish group Sabadell.

TSB, which listed on the stock market last summer following its demerger from Lloyds, was acquired by the Sabadell group for 340p a share, representing a 30.8% premium on the IPO price.

Paul Pester, chief executive, said this was “recognition of the excellent progress and great potential of the bank”.

TSB was carved out of Lloyds as part of the condition for the latter receiving state aid and it forms one of the new “challenger” banks encouraged by the government.

Mr Pester added: “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.”

The bank continued to invest in digital through the first half of 2015, including the launch of a mobile banking app.

It also extended the opening hours at almost 600 branches, with more than 150 opening for longer on Saturdays. It closed 15 where it had two or more branches within approximately 500 metres of each other and absorbed 17 lesser used branches into the 15 others.

Profit before tax on a management basis fell by 20.1% to £44 million compared to the second half of last year.  This decrease was expected and primarily reflected lower income, partially offset by a continuing improvement in impairment losses.

Income decreased by 3.9%, or £18.2m, to £446m with reductions in both net interest income and other income.  Net interest income of £385.2m fell by 2.8% primarily due to lower average lending balances.

On 30 June Miguel Montes and Tomás Varela were appointed to the board as non-executive directors.  Mr Montes is general manager and chief operations and corporate development officer of Sabadell. Mr Varela is general manager and chief financial officer of Sabadell.  Philip Augar, Norval Bryson and Mark Fisher resigned from the board.

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