TSB returns to profit

The Bank says the £151m improvement in financial performance was primarily driven by "the non-recurring effect of net migration-related costs and losses incurred in 2018".

TSB's 2018 losses were largely due to a failed IT upgrade which caused widespread disruption and allowed some customers to access other accounts. The Bank later admitted that 1,300 customers lost money as a result of fraud during the failures. Costs relating to the IT failures totalled £330.2m over the year, including customer redress of £125.2m, fraud and operational losses of £49.1m, resource and advisory costs of £122.4m and foregone income of £33.5m relating to waived fees and charges.

In 2019, underlying business performance saw a return to balance sheet growth.

Alongside pre-tax profits, customer loans increased by 3.6% (£1.1 billion) to £31.1 billion, driven predominantly by growth in mortgage lending.

Debbie Crosbie, TSB’s chief executive, 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.”