TSB chief executive Paul Pester is stepping down in the wake of the bank’s much publicised IT meltdown in April.
The search for a new chief executive is starting with immediate effect, with Richard Meddings taking over as executive chairman.
Pester will still be due £1.2m in pay as well as a £480,000 “historical” bonus before TSB was taken over by Sabadell in 2015.
Pester said: “The last few months have been challenging for everyone at TSB.
“However, I want to thank all my colleagues across TSB for their dedication and commitment during this period and for their focus on putting things right for TSB customers.
“It has been a privilege to lead TSB through its creation and first five years. I look forward to seeing the next stage of our bank’s history evolve.”
Meddings said: “Although there is more to do to achieve full stability for customers, the bank’s IT systems and services are much improved since the IT migration.
“Paul and the board have therefore agreed that this is the right time to appoint a new CEO for TSB.”
Bank of England Governor Mark Carney welcomed the resignation, saying it was right someone “took responsibility for what has happened”.