TSB’s full-year financial performance was dented by the coronavirus pandemic as lending rose sharply, the bank announced today.
Statutory loss before tax was £204.6m in 2020, compared to a £46m profit in 2019.
The losses largely reflects the adoption of government measures in response to Covid-19, as well as unemployment rates and reduced customer spending.
Debbie Crosbie, TSB’s Chief Executive, said: “The impact of the pandemic and the additional costs of restructuring overshadows our financial result for the year.
“We are seeing the financial impact of the pandemic but have accelerated TSB’s transformation.
“If you look beyond the financial headlines, I am really confident in our future success.”
Customer lending leaped by 7.2 per cent to £2.2bn in 2020, as mortgage applications exceeded £10bn in a year for the first time.
The increase was largely down to the Bounce Back Loan Scheme, aimed at supporting businesses throughout the pandemic.
TSB reached more than 20,000 businesses through the scheme, with over £0.5bn of lending.
A year of two halves
Meanwhile, deposits rose by £4.2bn, a 13.9 per cent increase, as customer spending reduced and household saving increased.
TSB ran underlying costs lower than 2019, as its balance sheet and capital position remained strong.
The bank granted 40,000 mortgage payment holidays and 74,000 loan and credit card payment breaks to support customers impacted by Covid-19.
Crosbie added: “This has been a year of two halves.
“TSB’s underlying performance is much improved. We are ahead of plan in the delivery of our strategy and have relaunched our brand, all of which sets us up well for the future.
“We can all see the green shoots that the vaccinations will deliver, but we need to prepare for another tough year ahead and remain laser-focused on our customers and the speedy delivery of our plans.”