Challenger bank TSB has reported a massive jump in pre-tax profit for the six months to 30 June, as customer numbers increased to beat targets and lending went up by almost 30 per cent.
Statutory pre-tax profit went up 440.5 per cent compared to the first half of 2015, hitting £125.4m, compared with £23.2m last year.
Management profit before tax rose by 144.8 per cent to £107.7m from £44m.
Total lending was up by 29 per cent to £27.93bn from £21.66bn, and total deposits rose 13 per cent to £28.2bn from £24.9bn.
The bank said that during the first half, seven per cent of all customers switching and opening new bank accounts chose to do so with TSB.
Why it's interesting
It's a difficult time to be a challenger bank, with many companies' shares tanking in the wake of the UK's vote for Brexit. But TSB is now cushioned by its (relatively new) owner Banco de Sabadell. The Spanish firm bought TSB for £1.7bn in March last year.
What TSB said
Chief exec Paul Pester said: “The first half of the year was another period of strong growth for TSB. The fact that TSB is now rated as Britain’s most recommended high street bank is a huge testament to the dedication and care delivered by our partners every day.
“When we launched the bank nearly three years ago, we did so with the promise that we would bring more competition to UK banking and ultimately make banking better for all UK consumers. These results demonstrate the progress we are making as we deliver on that promise – building a robust bank with a focus on its customers, underpinned by responsible lending and outstanding customer service."
He added: “Looking forward, our mission remains unchanged. In an uncertain world, TSB’s solid foundations – plus the additional firepower provided by Sabadell – will support our responsible growth strategy as we continue to make banking better for all UK consumers.”
TSB is maintaining momentum - but with the challenger bank market in general suffering from the fallout of Brexit, this could prove tougher in the second half of the year.