8th May 2025

TSB announces 2025 Q1 financial results

TSB has reported a statutory profit before tax of £101.3 million for Q1 2025, up 89.7% from Q1 2024 (£53.4 million), driven by improved income, reduced costs and the contribution of some one-off items.
Margins (NIM), Net Interest Income (NII) and Return on Tangible Equity (ROTE) have all grown year on year (YoY).
These results are both an increased contribution to Sabadell’s improved performance and a demonstration of the sustained financial strength of TSB.

Marc Armengol, TSB’s Chief Executive Officer, said:

“TSB has delivered an exceptional performance in the first three months of 2025 and continues to make an increasing contribution to Sabadell Group. It is encouraging to see margins improving and costs continuing to reduce, alongside the benefit of some one-off items.

“I'd like to thank my colleagues for their commitment and hard work every day to make TSB more efficient and an even better bank for our customers. We are well-placed for future growth as we look to deliver even more for our customers.”

Financial highlights for Q1 2025

TSB has reported a statutory profit before tax of £101.3 million for Q1 2025, which is up 89.7% from £53.4 million in Q1 2024, and up 7.1% from £94.6 million in Q4 2024. The year-on-year increase was driven by higher income, supported by some one-off items, as well as lower costs.
Operating expenses reduced by 4.7% to £195.1 million in Q1 2025, compared with £204.8 million in Q1 2024, reflecting continued cost control and the implementation of strategic initiatives to further simplify the business.
Income increased by 14.4% to £312.9 million in Q1 2025, up from £273.6 million in Q1 2024 which is driven by higher structural hedge income and supported by some one-off items. TSB’s net interest margin (NIM) is up 28 basis points vs Q1 2024 to 2.89%, increasing from Q4 2024 by 13bps.
Impairment charges are £16.5 million for Q1 2025, compared with £15.4 million in Q1 2024.
TSB’s cost-to-income ratio fell by 12.5 percentage points to 62.4% in Q1 2025, compared with 74.9% in Q1 2024, as a result of higher income and lower cost compared with the prior year.
TSB’s Return on Tangible Equity (ROTE) is 14.0% for Q1 2025 (rolling 12-month ROTE is 12.1%), comparing well against other UK banks.
Total customer lending has grown by £0.1 billion to £36.4 billion from 2024 year-end (£36.3 billion), driven by higher mortgage lending.
Total customer deposits have remained broadly unchanged at £35.1 billion compared with 2024 year-end (£35.1 billion), with growth in savings balances (+0.7% quarter on quarter) and broadly stable current account balances partly offset by seasonal tax payments for business banking customers.
TSB remains strongly capitalised with a Common Equity Tier 1 Ratio of 15.2%.

Financial Results

Balance sheet and capital (£ million)	At 31 March 2025 ("unaudited")	At 31 Dec 2024	Change vs Dec 2024
Loans and advances to customers	36,431.4	36,330.9	0.3%
Customer deposits	35,124.0	35,051.2	0.2%
Loan to deposit ratio	104%	104%	0 pps
Common Equity Tier 1 Capital ratio	15.2%	15.4%	(0.2) pps

Financial performance (£ million)	Q1 2025 ("unaudited")	Q1 2024	Change vs Q1 2024
Income	312.9	273.6	14.4%
Operating expenses	(195.1)	(204.8)	4.7%
Impairment losses	(16.5)	(15.4)	(7.1)%
Statutory profit before tax	101.3	53.4	89.7%
Tax	(27.6)	(15.8)	(74.7)%
Statutory profit after tax	73.7	37.6	96.0%
Net interest margin¹	2.89%	2.61%	28 bps
Asset quality ratio²	0.18%	0.17%	(1) bps
Cost:income ratio (statutory basis)	62.4%	74.9%	12.5 pps

¹ Net interest income divided by average loans and advances to customers, gross of impairment allowance.
² Impairment losses on loans and advances to customers divided by average loans and advances to customer, gross of impairment allowance.
Change vs Q1 2024 – positives reflect favourable performance and negatives reflect adverse performance.

Successes from Q1 2025

We attracted more customers to bank with TSB

More mortgages: TSB provided secured lending of £1.5 billion in Q1 2025, a 12% increase on Q1 2024, and helped more than 1,900 first-time buyers, driven by our extended mortgage range on New Build and Shared Ownership properties up to 95% Loan-to-Value, and a new 5&5 Concessionary mortgage product providing more renters with the opportunity to purchase their home from their landlord.
More customers supported to save: TSB supported more current account customers to save in Q1 2025 compared with Q1 2024 with an 18% increase in Savings Pots opened. Total balances across savings products grew by £149 million over Q1.
More credit cards and loans: TSB supported more customers with lending in Q1 2025, with credit cards growing 5% and personal loans growing 13% compared with Q1 2024 – making it TSB’s strongest quarter for loans since 2020.

We’ve made banking with TSB even easier

Improved customer experience: More customers would recommend TSB as our Net Promoter Score (NPS) for the bank increased 9.1 points from Q4 2024 to Q1 2025 – and in branches where we offer expert face-to-face service to support the move to digital banking, our NPS also increased 3.2 points over the same period.
Better digital channels: 91% of all sales were completed through digital channels and TSB supported more customers online in Q1 2025 with a 5% increase in online chats compared with Q4 2024.
Better digital experience: Over 30 enhancements to digital journeys, including for current account applications in the TSB Mobile Banking app and additional servicing options for credit card, loans and mortgage customers using our online chat.
Faster mortgage applications: Reduced average time taken from mortgage application to offer from 11.7 days in Q1 2024 to 9.6 days in Q1 2025, and in March alone, TSB helped customers to purchase over 3,000 new homes (up from 2,200 in March 2024).
Lower fraud losses: Over 10% reduction in fraud losses in Q1 2025 compared with Q1 2024, driven by continuous improvements in TSB fraud protection and prevention for customers.

Our people are doing even more to help our customers and their communities

Volunteering their skills: Money Confidence workshops have been delivered to more than 4,000 children and people in local communities, providing money management skills and career advice.
Taking care of carers: TSB offers one of the leading paid carers leave policies in the UK, with colleagues taking over 850 hours of paid leave in Q1 2025, and £15,000 of emergency support for TSB carers through KareHero.
Supporting domestic abuse victims: TSB is the only UK bank to offer customers an Emergency Flee Fund when their lives are in danger from domestic abuse and we are proud to have helped more than 80 people with this in Q1.
Reducing environmental impact: We have encouraged more customers to go paperless and extended our digital processes which helped to reduce our emissions from paper usage by 18% in Q1 2025 compared with the same period in 2024.

Outlook

The UK consumer remains resilient in the face of sluggish economic growth and uncertainty about the global outlook. Key concerns relate to the impact of trade tariffs on growth and employment in the UK economy.

TSB’s sustained focus on Money Confidence, coupled with our robust capital and liquidity position, remains highly relevant in supporting our customers.

– ENDS –

Media Contacts

Jennifer Powell, Head of Communications | 07483 918 573 | jennifer.powell@tsb.co.uk

Hannah Mickel, Senior Manager, Corporate Media | 07801704380 | hannah.mickel1@tsb.co.uk

Investors and analysts | investorrelations@bancsabadell.com