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TSB attracts 8.4 per cent of new customers

Kit Klarenberg
Written By:
Kit Klarenberg
Posted:
Updated:
27/02/2015

TSB has proudly proclaimed 2014 to have been “pivotal”, as the newly independent bank seized 8.4 per cent of all new customers last year.

TSB, separated from former partner Lloyds Banking Group in June last year, said over half a million new accounts were opened within six months of its independence; the total was comprised of both switchers and first-time account holders. These new accounts played a pivotal role by increasing TSB’s pre-tax profits by 2.3 per cent, to £133.7m.

The increases leaves TSB as the seventh-largest lender in the UK. The bank also has designs on the current account market; TSB chief executive Paul Pester said he intends to extend the bank’s share from 4.3 per cent to 6 per cent in the next four years, and that last year represented a “strong start” to current growth plans.

“Growth remains our key strategic focus and we expect TSB to continue to consistently attract more than 6% of all new and switching bank accounts each quarter,” he added.

Lloyds and TSB merged in 1995; however, after Lloyds was bailed out by taxpayers during the financial crisis, EU regulators ordered the bank to reduce the size of its operations, in compliance with pan-European regulations on state aid.

Originally plans were in the offing for Co-op to absorb hundreds of Lloyds branches into its own stable; however, after the deal collapsed, Lloyds opted instead to resuscitate TSB as an autonomous brand again, and sell the new entity to investors. As a result, TSB took over Lloyds 631 branches, and the corresponding customer base.

 


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