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IT meltdown costs TSB £330m

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Close to 80,000 customers left TSB last year following its high profile IT crisis.

TSB reported a pre-tax loss of £105.4m last year, after a string of IT glitches resulted in chaos for the bank’s customers.

The scale of problems created by TSB’s meltdown were revealed in the bank’s full-year results. The £105.4m pre-tax loss recorded last year contrasts with a £162.7m profit achieved in 2017.

The loss was largely down to migration costs relating to the bank’s IT system, which totalled £330.2m. Fortunately, this total was partially offset by the provisional recovery of £153m from TSB’s IT provider, Sabis.

The company said the £330.2m figure included costs relating to compensation, after customers found themselves locked out of their accounts and unable to make any transactions.

This is likely to have contributed to 80,000 customers leaving TSB and choosing to switch to a new bank. This is 30,000 more than 2017.

This leaves TSB with 3.8 million current account customers and over five million customers in total.

TSB said it has resolved around 90% of the 204,000 customer complaints since the migration.