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TSB returns to profit and takes on 200,000 account customers

Paloma Kubiak
Written By:
Paloma Kubiak

TSB swung into profit in 2019 and over 200,000 customers opened a bank account with the lender as it looks to put its IT fiasco firmly in the past.

The bank generated a profit before tax of £46m in 2019, up from a pre-tax loss of £105.4m in 2018 following its IT meltdown which left customers locked out of accounts and subject to fraud.

It also led to the chief executive Paul Pester stepping down, a £330m bill for the chaotic IT migration and an exodus of customers.

However, new chief executive Debbie Crosbie said 2019 was a ‘turnaround year’ for the bank as 200,000 customers opened or switched bank account to TSB.

This helped it generate a 3.7% increase in customer deposit balances from £29.1bn to £30.2bn.

TSB’s mortgage lending book also grew 3.6% from £30bn to £31.1bn.

Crosbie said: “TSB is back to doing what it does best, focusing on serving customers and innovating to meet their needs. We have returned to growth, making good, steady progress in customer loans and deposits.

“We know that customers want something different and better from their bank. Every day, more of our customers are taking advantage of our improved digital offer for their banking and, as the only bank to offer a Fraud Refund Guarantee, we’re on the side of the customer on the issues that matter to them.

“While the market remains competitive, I am confident that with our new strategy and clear purpose, TSB is well positioned to deliver even more for our customers.”