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New CEO seeks savings

Crosbie to shut 82 TSB branches as bank reshapes

Debbie Crosbie at CBI

Debbie Crosbie: difficult decisions (pic: Terry Murden)

New TSB chief executive Debbie Crosbie is closing 82 branches next year in order to find £100 million of cost savings by 2022.

Ms Crosbie, who moved from Clydesdale to replace Paul Pester following last year’s IT meltdown, said she was facing some “difficult decisions”.

Lloyds sold the bank to Spain-based Sabadell in 2015 and it made immediate promises to be different to the big four.

However, the IT failure, which affected 2m customers, and sector-wide changes in banking habits has forced it to follow a similar path down branch closures.

Those being axed from its current estate of 540 will be named on 28 November after staff have been told.

TSB would not comment on job numbers, but it is thought that between 300 and 400 positions will be affected.

Ms Crosbie said: “The plan we’re sharing today involves some difficult decisions, but it sets TSB up to succeed in the future.

“Our new strategy positions TSB to succeed in a challenging environment at a time when we know customers want something different and better from their bank.”

Ms Crosbie said the bank would spend £120m on improving its digital offering and automating some of its branches. By 2022, it expects 90% of transactions to be self-service.

Last year’s IT failure drove the bank to a loss in 2018, although in the first half of this year it reported a profit of £21.1m. Ms Crosbie is aiming for profits of between £130m and £140m in 2022.

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