Belfast Telegraph

TSB delivers profit as IT meltdown pain recedes

The bank scraped to a 7.3 million euro (£6.3 million) profit.

The bank posted a profit after recovering from its IT crisis (Gareth Fuller/PA)
The bank posted a profit after recovering from its IT crisis (Gareth Fuller/PA)

TSB has registered a small first quarter profit and claims to have resolved all complaints linked to last year’s costly IT meltdown.

In the three months to March, TSB scraped to a 7.3 million euro (£6.3 million) profit, up from a 43.8 million euro (£37.8 million) loss during the same period last year.

The figures come after the bank swung to a mammoth loss last year after a disastrous migration of its IT system cost it £330 million.

Parent company Sabadell said it was encouraged by strong growth in some areas such as mortgages.

Mortgage loan volumes rose 38% year-on-year to more than £1.5 billion for the quarter.

About 80,000 customers switched their bank account away from TSB in 2018, after the IT crisis last April which left up to 1.9 million users of its digital and mobile banking locked out of their accounts.

The tech troubles were triggered by a migration of customer data from former owner Lloyds’ IT system to a new one managed by Sabadell.

All complaints relating to the IT disaster have now been resolved, the Spanish banking group said.

“UK customers also consider that customer experience has improved, as reflected in significant increases in the net promoter score,” the lender added.

A number of executives, including chief executive Paul Pester, left the bank following the crisis.

New chief executive Debbie Crosbie, who joins from Clydesdale Bank, will start her role with the bank next week.

Ms Crosbie’s key objective will be “to improve TSB’s efficiency and profitability and roll out the new SME business in the United Kingdom”, the Spanish group said.

Jefferies analyst Benjie Creelan-Sandford said: “Deposits and loans ticked up modestly, but question marks over likely pace of turnaround will remain.”

Sabadell’s group profits slipped 0.4% to 258.3 million euro (£223 million), beating analyst predictions.

PA

Popular