TSB profits fall more than 50 per cent as bank's operating costs increase

 
William Turvill
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Paul Pester is the chief executive of TSB (Source: Getty)

TSB yesterday reported a 53 per cent fall in management pre-tax profits to £28m, citing increased operating costs.

The bank’s customer lending rose 12.6 per cent year-on-year to £30.9bn in the first quarter, it reported yesterday.

Read more: TSB boss: No, we're not buying the Co-op Bank

Operating costs increased by 24 per cent to £202.8m, driven by a £30.2m contractual increase in outsourcing fees paid to Lloyds.

TSB hit the ground running in 2017 as we continued on our mission to make banking better for all UK consumers,” chief executive Paul Pester said.

Read more: TSB to shut branches as customers swap brick and mortar for online

“We saw over 6,000 customers a week bring their banking to TSB in the quarter, with total deposit balances growing to nearly £30bn.

“We’ve also helped more customers than ever before to borrow well with TSB, lending £2.2bn to more than 14,000 homebuyers.”

Pester also did some vlogging (video blogging) to mark the results:

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