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TSB announces 2025 half-year financial results
- TSB has reported a statutory profit before tax of £191.4 million for H1 2025, up 71.5% from H1 2024 (£111.6 million) as a result of higher income and lower costs.
- These results maintain TSB’s positive trajectory and demonstrate the continued financial strength of the business.
Marc Armengol, TSB’s Chief Executive Officer, said:
“TSB’s strong performance – reflected in record profits for H1 2025 – shows the importance of the bank to our customers, that we’re now far more efficient and, most crucially, the hard work of our dedicated teams in serving TSB customers so brilliantly every day.”
Financial highlights for H1 2025
- TSB reported a statutory profit before tax of £191.4 million for the first half of 2025, which is up 71.5% from £111.6 million in the first half of 2024, and up 7.0% from £178.8 million in H2 2024. The main driver of this increase in H1 2025 was higher income and lower costs.
- Income increased by 8.7% to £596.7 million in H1 2025 (H1 2024: £548.7 million) driven primarily by higher structural hedge income from core stable deposit balances and supported by some one-off items.
- TSB’s Net Interest Margin (NIM) is up 24 basis points vs H1 2024 to 2.86%.
- Operating expenses reduced by 7.5% to £386.7 million in H1 2025, compared with £418.0 million in H1 2024 which reflects continued cost control and the implementation of strategic initiatives to further simplify the business.
- TSB’s cost-to-income ratio fell by 11.4 percentage points to 64.8% in H1 2025, compared with 76.2% in H1 2024 as a result of higher income and lower costs.
- Impairment charges were lower at £18.6 million in H1 2025 compared to £19.1 million in H1 2024, reflecting a low risk and resilient customer base.
- Total customer lending increased by £0.1 billion to £36.4 billion in H1 2025 compared to 2024 year-end which reflects a modest increase in mortgage balance growth, despite a challenging market.
- Total customer deposits have remained broadly flat at £35.0 billion in H1 2025 compared with 2024 year-end driven by higher current account spend and seasonal tax payments for business banking customers, partly offset by a 1.4% growth in savings balances.
- The balance sheet remains resilient with a strong Common Equity Tier 1 ratio of 15.1% and Liquidity Coverage Ratio of 181.0%.
- TSB’s return on tangible equity (ROTE) is 14.1% for H1 2025 (rolling 12-month ROTE is 13.4%), comparing well against other UK banks.
Financial Results
| Balance sheet and capital (£ million) |
At 30 Jun 2025 ("unaudited") |
At 31 Dec 2024 | Change vs. Dec 2024 |
|---|---|---|---|
| Loans and advances to customers | 36,392.2 | 36,330.9 | 0.2% |
| Customer deposits | 35,038.6 | 35,051.2 | (0.0)% |
| Loan to deposit ratio | 103.9% | 103.7% | 0.2 pps |
| Common Equity Tier 1 Capital ratio1 | 15.1% | 15.4% | (0.3) pps |
| Financial performance (£ million) |
H1 2025 ("unaudited") |
H1 2024 ("unaudited") |
Change vs. H1 2024 |
|---|---|---|---|
| Income | 596.7 | 548.7 | 8.7% |
| Operating expenses | (386.7) | (418.0) | 7.5% |
| Impairment losses | (18.6) | (19.1) | 2.6% |
| Statutory profit before tax | 191.4 | 111.6 | 71.5% |
| Tax | (52.3) | (33.1) | (58.0)% |
| Statutory profit after tax | 139.1 | 78.5 | 77.2% |
| Net interest margin2 | 2.86% | 2.62% | 24 bps |
| Asset quality ratio3 | 0.10% | 0.10% | 0 bps |
| Cost:income ratio (statutory basis) | 64.8% | 76.2% | 11.4 pps |
1. June 2025 excludes unverified half year profits attributable to the shareholder.
2 Net interest income divided by average loans and advances to customers, gross of impairment allowance.
3 Impairment losses on loans and advances to customers divided by average loans and advances to customer, gross of impairment allowance.
Change vs H1 2024 and Dec 2024 – positives reflect favourable performance and negatives reflect adverse performance.
Successes from H1 2025
Meeting the needs of more TSB customers…
- ...with savings and rewards – with a 19% increase in Savings Pots opened in H1 2025 compared with H1 2024, and a 12% increase in ISA balances. TSB also rewarded more current account customers with over £1.7 million paid in cashback in H1 2025 – up 8% compared with H1 2024.
- ...with lending – credit card sales increased 33% in H1 2025 compared with H1 2024. TSB’s new credit card eligibility checker is giving customers a better indication of eligibility before they apply, and as a result acceptance rates have increased by 36 percentage points from May to June 2025, making June a record month for sales since 2020. Additionally, there has been a 6% increase in loans balances in H1 2025 compared with H1 2024.
- ... with mortgages – TSB opened the door for more customers to get on the property ladder by increasing the maximum loan-to income multiples on mortgages up to 85% loan-to-value for customers with income over £75,000. TSB also recently reduced its mortgage stress rates by up to 2% for all residential mortgage applications, including first-time buyers, following a change to the FCA’s stress rate guidance.
- … through personal support – TSB branches recorded a 21% increase in product sales in H1 2025 compared with H1 2024 and now contribute 30% of overall sales, placing TSB branches in the top quartile for sales contribution in the UK*.
Making banking with TSB even better…
- … by preventing fraud faster – new fraud journey enhancements allow customers to resolve suspected fraudulent transactions more quickly, helping to improve fraud prevention by 60% in H1 2025 compared with H1 2024. Further improvements to fraud controls around digital wallets also prevented an additional 2,000 customers from falling victim to fraud in H1 2025.
- … with faster digital service – TSB improved customer journeys to the payments hub in the TSB Mobile Banking app and refreshed help and support pages with around 40% more customers getting help through their channel of choice.
- … with award-winning mortgages – at the 2025 What Mortgage Awards, TSB won Best Direct Lender for the fifth year running and Best Fixed Rate Mortgage Lender for the sixth year running – as voted for by customers and mortgage brokers.
Doing more for our customers, colleagues and their communities…
- … being a more inclusive business – around 50 Black and Black mixed-heritage colleagues and their managers joined TSB’s Ignite programme, a targeted development programme centred around career progression and inclusive leadership growth. This follows the success of last year’s programme which saw over a quarter of participants progress into new roles.
- … supporting victims of domestic abuse – TSB’s Emergency Flee Fund helped more than 180 customers in H1 2025 escape from abusive situations. This support was enhanced with the Hollie Guard Extra app to help safeguard customers.
- … reducing paper use – more customers have turned paperless, helping to deliver an 18% reduction in emissions relating to our paper usage in H1 2025, compared with H1 2024.
- …paying suppliers promptly – TSB was awarded the Gold Fair Payment Code Award in recognition of paying suppliers fairly and on time, with 99% of all invoices paid within 30 days and all SME suppliers paid in an average of 4 days in H1 2025.
Outlook
The UK consumer remains resilient in the face of slower 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 –
*Based on latest market data from Finalta Branch Effectiveness and Customer Value Benchmark Report covering January-December 2024.
Notes to editors:
- On 1 July, Sabadell Group entered into an agreement to sell TSB to Santander Group for an eventual sale price estimated at £2.9 billion, subject to shareholder and regulatory approval.
- TSB has 5 million customers and around 5,000 highly skilled colleagues.
- TSB is the 10th biggest bank for deposits and the 11th biggest bank for mortgages in the UK.
- TSB has the 7th largest branch network, with 175 branches across the UK.
- TSB remains the only UK bank accredited by the Good Business Charter.
