TSB returns to growth

Michael Lloyd

July 26, 2019

In its latest H1 figures, TSB has reported a growth in profit.

Statutory profit before tax in H1 2019 was £21.1m compared to a loss of £107.4m in H1 2018.

In addition, the lender has provided over £2.9bn of new mortgage advances to approximately 20,000 homeowners in the first half of 2019.

Debbie Crosbie, TSB’s chief executive officer, 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.  These results show we’re already on our way to building on our strengths to shape TSB’s future success.”

Mortgages also returned to growth at TSB, partially offset by reductions in unsecured lending and the expected continued run-off of the closed Whistletree book.

The mortgage portfolio loan-to-value remained at 44.0%, excluding the Whistletree portfolio.

However, management profit before tax, excluding IT migration costs, was £57.6m, a 27.9% decrease from H1 last year, reportedly due to pressures on margins and higher costs of regulatory programmes.

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