TSB swung into profit in 2019 under the bank’s new chief executive Debbie Crosbie as she set out to put a IT meltdown behind it.
Pre-tax profit reached £46 million over the year, an increase from a pre-tax loss of £105.4 million the year before. The bank had been heavily criticised for the tech failure in 2018 that locked two million customers out of their accounts and cost previous CEO Paul Pester his job.
This year, the Edinburgh-headquartered bank’s lending book increased to £31 billion, an increase of 3.6%. Customer deposits, meanwhile, rose by 3.7% to £30 billion. It gives the bank a loan to deposit ratio of 103% to customers across the period.
“TSB is a trusted brand and now operating on a modern banking platform,” it highlighted.
An investigation by external lawyers blamed the IT collapse part on TSB’s board. The directors lacked common sense in the lead-up to the failure, Slaughter and May said.
Pester stepped down in September 2018 and was replaced last April by Debbie Crosbie, originally from Bearsden and a veteran of Clydesdale and Yorkshire Bank, where she had held several positions. During her time there she oversaw of the transfer of customers to a new entity.
Crosbie said today: “TSB is back to doing what it does best, focusing on serving customers and innovating to meet their needs. We have returned to growth, making good, steady progress in customer loans and deposits.
“We know that customers want something different and better from their bank. Every day, more of our customers are taking advantage of our improved digital offer for their banking and, as the only bank to offer a Fraud Refund Guarantee, we’re on the side of the customer on the issues that matter to them.
“While the market remains competitive, I am confident that with our new strategy and clear purpose, TSB is well positioned to deliver even more for our customers.”