TSB returns to growth after IT meltdown
TSB announced it has returned to growth following a computer system meltdown that left millions of customers unable to access their accounts.
The figures
Statutory profit before tax in the first half of the year was £21.1m, compared to a loss of £107.4m in the first six months of 2018.
Total customer deposits increased by £700m to £29.8bn following a successful ISA season and total loans to customers were up 1.2 per cent to £30bn.
Net interest margin was 2.76 per cent, down from 2.82 per ccent in the first half of last year.
Why it’s interesting
The challenger bank said the absence of IT migration costs and a significant reduction in the costs of the subsequent disruption allowed it to return to profit. IT incidents at the bank have been “in line with the industry” and all customer complaints in relation to the technology meltdown have been dealt with, TSB said.
In February TSB said the botched IT migration in May last year cost £330m including customer compensation and fraud losses.
Today’s results are the first to be published under the leadership of former CYBG chief operating officer Debbie Crosbie, who took charge as chief executive in May this year. Crosbie replaced Paul Pester who stepped down last year following the IT meltdown.
What TSB said
TSB chief executive Debbie Crosbie said: “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.”