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TSB posts loss after IT disruption

Theo Osborn | 12:25 Friday 27th July 2018

TSB has reported a pre-tax statutory loss of £107.4m in H1 2018, compared with a profit of £108.3m in H1 2017.

The challenger bank’s financial performance in the six months to 30th June 2018 was significantly impacted by the IT migration and subsequent service disruption when it moved to a new system in April.

Around 26,000 TSB customers switched their bank account away from the challenger bank in Q2 2018, according to its latest results.

However, more than 20,000 customers opened a new bank account or switched their account to TSB in the same period.

Since the IT migration, TSB has received 135,403 complaints from customers.

It has recruited over 1,800 staff to mitigate the customer impact of the service disruption.

A dedicated team of over 260 people has also been set up to look at customer complaints on an individual basis.

All complaints have received a response, with 37% of them resolved so far.

Paul Pester, chief executive officer at TSB, said: “We’re making progress in resolving the service problems customers experienced following our IT migration, and we will continue to work tirelessly until we have put things right.

“I know how frustrated many customers have been by what’s happened.

“It has been a difficult time for customers and I am grateful to them for their patience.

“Our priority in the second half of the year continues to be putting things right for our customers.

“Looking further ahead, we are determined to get back to bringing more competition to UK banking and ultimately making banking better for consumers and small businesses.”

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