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TSB 2025 full-year financial results
- TSB has reported a statutory profit before tax of £350.4 million for 2025, up 20.7% from the same period in 2024 (£290.4 million), driven by higher income and lower costs.
- This represents a continued trend of record profit for the business, demonstrating sustained commercial performance ahead of an expected change of ownership in 2026.
Marc Armengol, TSB’s Chief Executive Officer, said:
“2025 was an extraordinary year for TSB. Our record financial performance was underpinned by the committed, collective effort of my colleagues: stepping up to ensure we stay truly competitive, deliver money confidence for our customers, act responsibly and run the bank more efficiently.”
Financial highlights for 2025
- TSB reported a statutory profit before tax of £350.4 million for 2025, up £60.0 million (20.7%) compared to the same period in 2024 (£290.4 million).
- Income increased by 3.6% year-on-year to £1,183.4 million in 2025 (£1,142.4 million in 2024), reflecting higher structural hedge income from a stable base of deposit balances.
- TSB’s Net Interest Margin (NIM) was up 21 basis points from 2.68% in 2024 to 2.89% in 2025.
- Operating expenses in 2025 reduced by 4.4% to £786.0 million, compared with £821.9 million in 2024, reflecting continued cost control, and the implementation of strategic initiatives to further simplify the business.
- TSB’s cost-to-income ratio fell by 5.5 percentage points to 66.4% in 2025, compared with 71.9% in 2024, reflecting continued cost management discipline and income improvements while remaining focused on delivering for customers.
- Impairment charges increased to £47.0 million in 2025 compared to £30.1 million in 2024. 2024 benefitted from one-off provision releases associated with the cost-of-living crisis.
- Total customer lending remained broadly flat at £36.3 billion for 2025 year-end compared with 2024 year-end. Despite a challenging lending market, mortgage balances remained stable.
- Total customer deposits also remained broadly flat at £35.2 billion for 2025 year-end compared with 2024 year-end. Savings balances grew 2.3% in 2025 driven by increased fixed-rate balances. Loan to deposit ratio continues to reduce, now standing at 103%.
- The balance sheet has strengthened with Common Equity Tier 1 ratio of 16.7% and Liquidity Coverage Ratio of 204.8%.
- TSB’s return on tangible equity (ROTE) has improved from 10.6% for 2024 to 12.6% for 2025, showing continued improvement in utilising capital resources. This compares well with other UK retail banks*.
Financial Results
| Balance sheet and capital (£ million) |
At 31 Dec 2025 |
At 31 Dec 2024 | Change vs. Dec 2024 |
|---|---|---|---|
| Loans and advances to customers | 36,268.4 | 36,330.9 | (0.2)% |
| Customer deposits | 35,209.0 | 35,051.2 | 0.5% |
| Loan to deposit ratio | 103% | 104% | 1 pp |
| Common Equity Tier 1 Capital ratio | 16.7% | 15.4% | 1.3 pps |
| Financial performance (£ million) |
FY 2025 | FY 2024 | Change vs. 2024 |
|---|---|---|---|
| Income | 1,183.4 | 1,142.4 | 3.6% |
| Operating expenses | (786.0) | (821.9) | 4.4% |
| Impairment losses | (47.0) | (30.1) | (56.1)% |
| Statutory profit before tax | 350.4 | 290.4 | 20.7% |
| Tax | (91.1) | (82.5) | (10.4)% |
| Statutory profit after tax | 259.3 | 207.9 | 24.7% |
| Net interest margin1 | 2.89% | 2.68% | 21 bps |
| Asset quality ratio2 | 0.13% | 0.08% | (5 bps) |
| Cost:income ratio (statutory basis) | 66.4% | 71.9% | 5.5 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 Dec 2024 – positives reflect favourable performance, and negatives reflect adverse performance.
TSB business performance
Meeting the needs of TSB customers…
- … with more mortgages – Mortgage completions increased by 9.5% in 2025 compared with 2024, and an additional 7% of customers chose to keep their mortgage with TSB in 2025 compared to 2024.
- … with more lending – With competitive pricing and an improved credit card application journey, including a new eligibility checker for customers, lending increased by 6% in 2025 compared with 2024. Total credit card transactions also reached a five-year record on 13 December in the run up to Christmas.
- … and more customer rewards – In 2025, TSB rewarded customers with over £4.4 million given in cashback (up 17% compared to 2024), and more than 500 loyal customers benefited from prize draws run throughout the year.
Making banking with TSB even better…
- … through enhanced services – TSB branches contributed 31% of total sales in 2025, up from 23% in 2024. TSB also upgraded its technology infrastructure and made over 1,500 digital improvements in 2025, including making it easier for customers to organise accounts, manage transactions and apply for new products.
- …with more fraud protection – TSB introduced a new faster and safer customer verification process for current account applications, and through enhanced fraud detection, decreased the level of fraudulent payments from taking place in 2025, with prevention up 37% on 2024.
- … with long-running award-winning mortgage service for customers and brokers – TSB won What Mortgage Award’s Best Direct Lender for the fifth year running and Best Fixed-Rate Lender, and was recognised as a 5-Star Mortgage Provider at the Financial Adviser Service Awards, both for the sixth year running.
Doing more for our customers, colleagues and their communities…
- … through colleague volunteering in local communities – In 2025, 23% of TSB colleagues volunteered their skills, almost double the industry average of 13%, including delivering workshops to more than 5,000 people in local communities through our Money Confident Communities Programme.
- …by being an even more diverse business – TSB exceeded its three-year representation goals for the end of 2025, with women holding 43% of senior roles (target: 40%) and Black, Asian and minority ethnic colleagues representing 20% of the workforce (target: 14%).
- … with leading domestic abuse support – TSB’s industry-leading Emergency Flee Fund supported more than 400 customers and colleagues fleeing abuse in 2025 – up from more than 280 in 2024. Victim-survivors received an average of £382, as well as access to the Hollie Guard Extra enhanced personal safety app following its launch in May 2025.
Outlook
UK consumers remain cautious, yet resilient, in an uncertain economic environment. Unemployment increased in 2025 and economic growth has weakened, but the housing market remains stable and lower inflation is expected to pave the way for further base rate cuts in 2026.
TSB’s continued focus on helping people improve their Money Confidence means the bank remains highly relevant and attractive to customers and our strength is underpinned by our robust capital and liquidity position.
– ENDS –
Notes to editors:
- * The Bank of England’s Financial Stability Report (December 2025), states that ‘major UK banks’ statutory RoTE in Q3 was 12.2%’.
- On 1 July 2025, Sabadell Group entered into an agreement to sell TSB to Santander Group for an eventual sale price estimated at £2.9 billion, subject to regulatory approval. The transaction is expected to complete in 2026.
- TSB has 5 million customers and around 4,700 colleagues.
- TSB is the 11th biggest bank for mortgages in the UK.
- TSB serves customers across mobile, internet, telephone and video banking.
- TSB also provides personal support at over 220 locations across the UK, including branches, TSB Pods, pop-ups, as well as participating in banking hubs in local communities.
