21 April 2016

TSB scores a hat-trick in first quarter

  • Record growth in customer deposits,
  • Record number of people choosing TSB as the home for their mortgage,
  • Record number of customers willing to recommend TSB to friends and family.

Today, TSB announces its financial results for the three months to 31 March 2016. Building on the momentum of last year, TSB delivered a record-breaking quarter as it continued its mission to bring more competition to UK banking.

Highlights for the quarter include:

  • 7.1% of all customers opening a new bank account or switching banks chose TSB in Q1 2016 (1) - the ninth consecutive quarter in which TSB has exceeded its 6% target.
  • Customer deposits at £26.8 billion, up £900 million (3.5%) on the previous quarter. 
  • Total customer lending at £27.4 billion, up £1 billion (3.9%) on the previous quarter.
  • Franchise customer lending at £22.4 billion, up £1.3 billion (6.1%) on the previous quarter as more customers chose TSB as the destination for their mortgage. 
  • Bank Net Promoter Score (NPS) up four points to 21 points (2) as more customers than ever before would recommend TSB to friends and family. 
  • Profits double on the previous quarter to £59.9 million (management basis) - a rise of 75% on Q1 2015. 

Paul Pester, TSB Chief Executive Officer, said:

"I'm delighted that TSB has kicked off the year with a hat-trick of successes.

"As customers continue to vote with their feet and move their banking to TSB, we've seen record growth in our customer deposits, a record number of people choosing TSB for their mortgage, and more customers than ever before willing to recommend TSB to friends and family.

"However, there's plenty to do as we continue on our mission to bring more competition to UK banking. The extra firepower we now have behind us from Sabadell is helping us to take on the big banks in new areas, such as through our new "Pick and Protect" home insurance product.

"So, whilst I think TSB is doing its bit to break the strangehold the big five banks have on the UK market, we can't do this alone. We need the CMA to use this once in a generation opportunity they have to help us bring the full force of competition to bear on the UK banking market. We want all bank customers to know what they're paying for their banking; all customers - including overdraft users - to be able to switch easily; and all customers to be aware of their right to switch banks. Only then will competition really start to work and the culture of UK banks finally shift to serving customers on their terms - rather than on the banks'."

Find out more about TSB's Q1 2016 results .

 

(1) Source: CACI Current and Savings Account Market Database (CSDB) which includes current, packaged, youth, student and basic bank accounts, and new account openings excluding account upgrades. Data presented on a two month lag.

(2) NPS is based on the question "On a scale of 0-10, where 0 is not at all likely and 10 is extremely likely, how likely is it that you would recommend TSB to a friend or colleague?" NPS is the percentage of TSB customers who score 9-10 after subtracting the percentage who score 0-6. Calculated on 3 month rolling average January - March.