TSB Bank, a subsidiary of Banco Sabadell, has posted a profit before tax of £46mfor last year, recovering from the losses made in the previous year.
The UK retail bank has returned to profit in 2019 after posting a loss before tax of £105.4m in 2018.
The increase of £151m in the financial performance was driven by the non-recurring effect of the net migration-related costs and losses incurred in 2018, TSB bank said.
TSB Bank’s total customer lending for the year stood at £31.07bn and total customer deposits were £30.18bn. Compared to 2018, customer lending grew by 3.6% from £30bn. The bank attributed the increase to growth in mortgage lending.
The lender saw a 3.7% increase in customer deposits to £30.2bn in 2019. . The increase was attributed to the growth in personal current account balances and business banking deposit balances, which increased by 20.7%.
The loan to deposit ratio has remained the same at 103% for last year and 2018.
TSB Bank posts a decline in net interest margin to 2.75%
TSB Bank’s net interest margin decreased from 2.87% in 2018 to 2.75% last year due to competitive pressure and lower level of unsecured lending. The net interest margin is also partly offset by lower impairment losses.
TSB Bank CEO Debbie Crosbie said: “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.”
Last year, the bank had partnered with several fintechs in the UK to provide enhanced customer service.
The bank plans to make an investment of £120m in digital capabilities over the next three years.
Recently, TSB Bank has chosen IBM Services as its strategic partner to speed up its transition to a truly digital business.
