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TSB posts £105m pre-tax loss

Theo Osborn | 11:30 Friday 1st February 2019

TSB has reported a pre-tax loss of £105.4m for the year to 31st December 2018 as a result of the IT migration issues that the bank faced over the course of last year.

This is down on the £162.7m profit recorded for 2017.

The bank has recognised post-migration costs, including customer compensation, additional resources and fraud.

In addition, it has recognised foregone income of £330.2m, partially offset by the provisional recovery of £153m from its IT provider Sabis.

Despite these issues, TSB reported that around 140,000 customers opened a new account or switched to TSB in 2018, compared with around 80,000 who moved away.

The bank now has over five million customers in total and resolved around 90% of the customer complaints it has received since migration.

Its total customer lending stood at £30bn as of 31st December 2018, with customer deposits at £29.1bn.

Richard Meddings, executive chairman at TSB, said: “Last year was TSB’s most challenging year.

“But we enter 2019 with renewed ambition to re-emerge as the leading challenger bank in the UK — firmly on the side of the customer.

“In addition to continuing to improve our offer for consumers, we are going to make a significant move into business banking.

“We have a multi-million-pound investment programme underway to help us grow our business banking offer across every town and city we serve — as the only challenger bank with a nationwide branch network, and we were named in December as part of the incentivised switching scheme.

“While the migration caused considerable difficulties, we’re now a stronger bank, operating on a more coherent and modern platform, and able to service more customers than ever before.”

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