UK-based retail and commercial bank TSB has announced its plans to close 82 of its branches in 2020, as part of its strategy to save £100m in costs by 2022.
With the closure of the branches, TSB’s network of branches across England, Scotland and Wales, will be reduced from 540 to 454, at the end of 2020.
TSB CEO Debbie Crosbie said: “Our new strategy positions TSB to succeed in a challenging external environment at a time when we know customers want something different and better from their bank. With a trusted brand, modern platform, and national presence, TSB is well placed to deliver – but we need to make changes to enable us to compete.
“The plan we’re sharing today involves some difficult decisions, but it sets TSB up to succeed in the future. Taken together, these changes will help us to serve more customers, better, for the long-term.”
TSB’s new strategy for future growth
The bank has announced its new strategy for future growth, comprised of three key priorities, including customer focus, simplification and efficiency, and operational excellence.
According to the TSB’s future growth plan, it would deliver approximately £100m in net cost efficiencies, and a 15 percentage point improvement in its cost-to-income ratio.
TSB said that it will incur approximately £180m in branch and restructuring charges over the course of the plan, and expects profits of nearly £130m to £140m in 2022.
According to the bank, its strong funding plan would support its growth while maintaining a low cost of funds and a strong liquidity position.
The bank is expected to announce the locations of branch closures on 28 November, after informing its impacted employees.
Sabadell CEO, Jaime Guardiola said: “TSB brings enhanced scale and broader geographical diversification to the Group, and is a key lever to improve our profitability going forward.
“The Strategic Plan we present today sets the stage for TSB’s future growth. TSB has a strong starting position and a well-defined plan to deliver all the commitments. I am very confident that TSB has the right team to deliver this plan and they have all the support from the Group.”
