04 September 2018

TSB announces Paul Pester to step down as CEO; Richard Meddings to become Executive Chairman on interim basis

The Board of TSB Bank Plc has today announced that after 7 years as CEO, Paul Pester will be stepping down from his position and leaving the company.

Richard Meddings, current Non Executive Chairman of TSB, will take on the role of Executive Chairman with immediate effect in order to enable a full public search to commence for a new CEO.

Whilst there is still work to do to achieve full stability for customers, TSB’s systems and services are much improved since the bank’s IT migration earlier this year. Paul and the Board have therefore agreed that this is the right time for Paul to step down and to appoint a new CEO for TSB.

Commenting on the changes, Richard Meddings said:

"Paul has made an enormous contribution to TSB. Thanks to his passion and commitment, TSB is today one of the UK’s strongest challenger banks, serving over 5 million customers across the UK. On behalf of the TSB Board, I want to thank Paul for everything he has achieved as CEO and pay tribute to the contribution he has made in bringing greater competition to the UK retail banking market.

"Although there is more to do to achieve full stability for customers, the bank’s IT systems and services are much improved since the IT migration. Paul and the Board have therefore agreed that this is the right time to appoint a new CEO for TSB. Our goal is therefore to allow a full search to commence, without any distractions, enabling TSB to build for the future.

"Meanwhile I have been asked by the Board to take on the role of Executive Chairman on an interim basis. Together with the Executive Committee, we have three immediate priorities: to complete the work of putting things right for customers; to enable the bank to achieve full functionality – including the availability of all product services and launch of a leading Business Banking offer; and appointing a CEO for the next chapter of TSB."

Paul Pester said:

"Five years ago, on 9 September 2013, we launched TSB back onto high streets across Britain. I vividly remember standing in our Baker Street branch, waiting to reveal TSB above the door. But it wasn’t just a sign we were revealing – we were revealing a bank with a clear mission to bring more competition to UK banking and ultimately make banking better for all UK consumers.

"Thanks to the fantastic work and commitment of all TSB Partners, we have achieved real success in creating a bank which is truly consumer-focused, attracting customers from the UK’s established banks, and growing TSB’s balance sheet from c.£18bn to c.£31bn today. The last few months have been challenging for everyone at TSB. However, I want to thank all my colleagues across TSB for their dedication and commitment during this period and for their focus on putting things right for TSB customers.

"It has been a privilege to lead TSB through its creation and first five years. I look forward to seeing the next stage of our bank’s history evolve."

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Notes to editors

  1. Paul Pester joined Lloyds Banking Group (‘LBG’) in 2010 and was appointed to lead the design, build and launch of TSB Bank and its separation from LBG in 2011.
  2. On 30 June 2015, TSB became part of banking group Sabadell.
  3. TSB today serves over 5 million customers, with comprehensive distribution and product capabilities, including 550 branches across the UK.
  4. Paul will be paid in line with the bank’s remuneration policy and the terms of his contract. The release of variable pay will take into account the outcome of performance conditions as well as ongoing regulatory and independent investigations.
  5. Richard Meddings' temporary appointment as Executive Chairman is subject to formal regulatory approval. 

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