Shares in TSB jumped 3.2 per cent this morning, after it published figures showing profits had soared 28.8 per cent to £33.1m in the three months to 30 September as it picked up nearly one in 10 new current accounts in the UK.
Franchise banking net interest margin remained stable at 3.61 per cent, while the bank, which Lloyds floated in June, remains strongly capitalised with a pro forma fully loaded Common Equity Tier 1 capital ratio of 18.8 per cent. European banking rules dictate it must have a Tier 1 capital ratio of six per cent or greater.
Paul Pester, TSB's chief executive officer, commented:
While we have always been clear that we are on a five year journey to grow TSB and its returns, it's great to see people right across Britain continuing to vote with their feet for TSB's local banking model.
Nearly 1 in 10 of all customers who opened new bank accounts or switched during the last quarter chose TSB - this is well ahead of our long term target and is testament to the great service our TSB Partners continue to deliver.
Last month, Lloyds announced it will sell another 11.5 per cent of its shares in TSB. The sale cut Lloyds’ holding in TSB to around 50.5 per cent.
Swiss investment bank UBS had the sole mandate to run the book on the accelerated deal, with David Soanes and Christopher Smith rounding up the institutional investors to buy into the offer.