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TSB announces Q3 2025 financial results
- TSB has reported a statutory profit before tax of £270.6 million for the first nine months of 2025, up 38.2% from the same period in 2024 (£195.8 million), as a result of higher income and lower costs.
- Results demonstrate TSB’s continued financial strength as it approaches change of ownership.
Marc Armengol, TSB’s Chief Executive Officer, said:
“TSB’s strong year-on-year performance is underpinned by improved efficiency across the bank, allowing us to focus on offering our loyal customers even better service and more products that meet their banking needs.”
Financial highlights for Q3 2025
- TSB reported a statutory profit before tax of £270.6 million for the first nine months of 2025, up £74.8 million (38.2%) compared to £195.8 million for the same period of 2024.
- Income increased by 3.0% to £884.8 million by the end of Q3 2025, compared to £859.3 million in the same period of 2024. This was driven primarily by higher structural hedge income from core stable deposit balances, partly offset by lower interchange income and lower one-off recoveries.
- TSB’s Net Interest Margin (NIM) was up 21 basis points vs Q3 2024 to 2.86%.
- Operating expenses for the first nine months of 2025 reduced by 7.5% to £581.7 million, compared with £628.9 million by the end of Q3 2024, reflecting continued cost control and the implementation of strategic initiatives to further simplify the business.
- TSB’s cost-to-income ratio fell by 7.5 percentage points to 65.7% at Q3 2025, compared with 73.2% at Q3 2024, reflecting these lower costs alongside higher income in 2025.
- Impairment charges were lower at £32.5 million for the first nine months of 2025 compared to £34.6 million over the same period in 2024, reflecting a low risk and resilient customer base.
- Total customer lending remained broadly flat compared with 2024 year-end (£36.2 billion at Q3 2025). Despite a challenging lending market, mortgage balances remained flat alongside some attrition from product lines that are no longer on sale.
- Total customer deposits also remained broadly flat compared with 2024 year-end (£35.2 billion at Q3 2025).
- Savings balances grew 2.1%, partly offset by higher current account spend and seasonal tax payments for business banking customers.
- The balance sheet remains resilient with a strong Common Equity Tier 1 ratio of 16.3% and Liquidity Coverage Ratio of 189.9%.
- TSB’s return on tangible equity (ROTE) is 12.7% for 2025 year-to-date (rolling 12-month ROTE is 12.9%), compares well with other UK retail banks given its higher capital position
Financial Results
| Balance sheet and capital (£ million) |
At 30 Sept 2025 ("unaudited") |
At 31 Dec 2024 | Change vs. Dec 2024 |
|---|---|---|---|
| Loans and advances to customers | 36,206.9 | 36,330.9 | (0.3)% |
| Customer deposits | 35,159.4 | 35,051.2 | 0.3% |
| Loan to deposit ratio | 103% | 104% | 1 pp |
| Common Equity Tier 1 Capital ratio | 16.3% | 15.4% | 0.9 pps |
| Financial performance (£ million) |
9 months to Sep 2025 ("unaudited") |
9 months to Sept 2024 ("unaudited") |
Change vs. Q3 2024 |
|---|---|---|---|
| Income | 884.8 | 859.3 | 3.0% |
| Operating expenses | (581.7) | (628.9) | 7.5% |
| Impairment losses | (32.5) | (34.6) | 6.1% |
| Statutory profit before tax | 270.6 | 195.8 | 38.2% |
| Tax | (72.3) | (58.0) | (24.7)% |
| Statutory profit after tax | 198.3 | 137.8 | 43.9% |
| Net interest margin1 | 2.86% | 2.65% | 21 bps |
| Asset quality ratio2 | 0.12% | 0.13% | 1 bp |
| Cost:income ratio (statutory basis) | 65.7% | 73.2% | 7.5 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 Q3 2024 and Dec 2024 – positives reflect favourable performance, and negatives reflect adverse performance.
TSB Success
Meeting the needs of TSB customers…
- … with more accounts opened – TSB opened 914,000 financial products in the first nine months of 2025 – with Q3 2025 sales up 3% compared with the previous quarter (Q2 2025).
- … with more mortgages – Mortgage applications increased 9.0% to £6.3 billion over the first nine months of 2025 compared with the same period in 2024, and TSB launched a New Build Service Guarantee to process all New Build applications by the next working day*.
- and more support – Over the last quarter we sent personalised messages to over 4.2 million customers to help them get more from their money and access additional support.
Making banking with TSB even better……
- ...by rewarding more customers – More than 45,000 Current Account customers entered a new monthly prize draw since it launched in July, and TSB paid over £2.9 million in cashback over the first nine months of 2025 – up 20% compared with the same period in 2024.
- … by enhancing our mortgage range – TSB launched a new residential mortgage product offering customers £250 cashback when they purchase a home with an EPC rating of A or B.
- … by supporting more customers in branch – TSB’s multiskilled branch colleagues contributed 31% of overall sales in the first nine months of 2025 – a 35% increase compared with 2024.
- … by helping more customers online – Additionally, TSB helped more customers than ever before through its online chat with 560,000 customer conversations in Q3 2025 – up 17% compared with Q2 2025.
- and by protecting customers from fraud – Further improvements to fraud controls prevented an additional 76% of fraudulent payments over the first nine months of 2025 and stopped nearly 6,000 additional customers from falling victim to fraud through digital wallets.
Doing more for our customers, colleagues and their communities…
- … by supporting victims of domestic abuse – Over the first nine months of 2025, TSB helped more than 275 people to escape from an abusive situation with access to TSB’s industry-leading Emergency Flee Fund.
- … through colleague volunteering – Over 16% of TSB colleagues have volunteered in 2025, compared with an industry average of 13%, including delivering workshops to more than 4,500 people in local communities through our Money Confident Communities Programme.
- and by going paperless – Over 85% of TSB’s digitally active current account customers now choose to receive their documentation digitally, saving 58 million pieces of paper on bank statements alone (the equivalent of over 6,900 trees).
Outlook
UK consumers remain cautious yet resilient in an uncertain economic environment. Inflation has increased slightly in 2025 and economic growth weakened in the second half of the year, but the housing market remains stable and interest rates are showing a gradual reduction.
TSB’s sustained focus on Money Confidence remains highly relevant in supporting our customers and is underpinned by our robust capital and liquidity position.
– ENDS –
Notes to editors:
- *TSB’s New Build Service Guarantee is offered where the application documentation is complete.
- 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 regulatory approval. The transaction is expected to complete in Q1 2026.
- TSB has 5 million customers and just under 5,000 colleagues.
- TSB is the 11th biggest bank for mortgages in the UK.
- TSB has 175 branches across the UK.
- TSB remains the only UK bank accredited by the Good Business Charter.
