TSB hopes to use Royal Bank of Scotland competition fund to propel itself into small business banking market

 
William Turvill
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TSB said it provided more than £4bn of new mortgage advances in the first half of the year

Challenger bank TSB has its sights set on the proposed new Royal Bank of Scotland competition fund as it seeks to impose itself in the business lending market.

The company appointed its first commercial banking director this week as it seeks to move into the small and medium-sized enterprise (SME) market.

Today, after reporting a management pre-tax profit of £111m, up £3.3m on last year, finance chief Ralph Coates told City A.M. TSB is aiming to become a “meaningful player” in business banking.

And Coates believes the £835m RBS fund, agreed by the government as a way to satisfy state aid issues with the European Commission, can act as a springboard for TSB.

“We see it as a great opportunity. It could be significant for TSB,” he said. “We would like to think that TSB – what we’re doing, the foundations we’re laying – could be a meaningful player in this market.

“And we’d be looking to be at the front of the queue, to claim a large chunk of that potential fund. It all aids competition, which is what we’re about.”

Also in its results today, TSB said it had provided more than £4bn of new mortgage advances in the first half of the year, helping 25,000 homeowners.

Read more: TSB profits fall more than 50 per cent

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