TSB has cancelled bonuses for chief executive Debbie Crosbie and her executive committee as the bank takes measures to cope with coronavirus.
The Edinburgh headquartered lender’s move followed a request from the Bank of England’s Prudential Regulation Authority for public listed banks to withhold bonuses and ordinary dividends until the impact of the outbreak becomes clearer. It wants banks to be in as strong a position as possible to support businesses which suffer loss of income.
TSB was part of Lloyds Banking Group at the time when it was bailed out by the taxpayer during the 2007-09 financial crisis.
Lloyds, NatWest, Barclays, Santander and HSBC are among the major banks which have agreed to postpone dividends but have yet to say whether bonuses will be paid.
Crosbie said: “Every one of us at TSB is doing everything we can to support customers through this difficult time. I’m very proud of the efforts and dedication by teams across the business and the extraordinary lengths many have gone to help our customers, particularly those most in need. As an Executive Committee, it is right to give up these awards, so that we are better able to recognise the work our colleagues on the front line are doing to help customers.”
TSB says it has helped more than 35,000 customers with mortgage and personal loan repayment holidays during the outbreak.
But NatWest – the former RBS Group – admitted it was struggling to get emergency loans to businesses after call centres were swamped with 25,000 calls a day.
CEO Alison Rose said: “Our call centres normally take 3,000 calls a day; we are now receiving 25,000 which is why I’m redeploying staff, retraining staff and getting people to help. The money is starting to move but I appreciate it is a very desperate situation for a lot of businesses.”
