Crosbie hails ‘new chapter’ as TSB returns to profit after IT fiasco
Debbie Crosbie: improving business performance (pic: Terry Murden)
TSB, now part of Spanish bank Sabadell, has recovered from its IT fiasco reporting a first half profit of £21.1m against a £107.4 million loss in the corresponding period a year earlier.
Total customer deposits increased by £0.7 billion (2.6%) to £29.8bn in H1 2019 and reflected a successful ISA season. Loans to customers increased by £400m (1.2%) to £30.4bn in H1 2019.
There were 6,500 new business current accounts and Small to Medium Enterprise (SME) savings balances increase by 25% in the first half of 2019.
TSB said it liquidity is robust, with a loan to deposit ratio of 101.7%, while its capital position remains one of the strongest of the UK banks with a Common Equity Tier 1 capital ratio of 20.0%.
However, net interest margin at 2.76% was down from 2.82% to 2.76%, primarily reflecting mortgage margin compression.
Debbie Crosbie, former Clydesdale Bank chief operating officer, who joined as chief executive in May, said: “TSB has begun a new chapter, underpinned by improving business performance and strong fundamentals.
“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.
“Since joining the business in May, I have been incredibly impressed by the commitment and passion my colleagues have to serve our customers, and I firmly believe that TSB has all the right capabilities to be the leading UK challenger bank.
“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 underway, and we will share full details later this year.”