TSB has unveiled a new growth strategy as it aims to focus on better serving customers and improving competitiveness.
The bank’s three-year strategy will see it invest £120m to transform digital channels, and achieve both a profit target of between £130m–140m by 2022 and around 5% net lending growth per annum.
TSB is also hoping to significantly improve efficiencies with a 15-percentage point improvement in cost-to-income ratio and £100m in net cost savings by 2022.
It also plans to undertake a reduction in the branch network in response to changing customer behaviour.
"Our new strategy positions TSB to succeed in a challenging external environment at a time when we know customers want something different and better from their bank,” said Debbie Crosbie, chief executive officer at TSB.
“With a trusted brand, modern platform and national presence, TSB is well placed to deliver — but we need to make changes to enable us to compete.”
Jaime Guardiola, CEO at Banco Sabadell, added: “TSB brings enhanced scale and broader geographical diversification to the group, and is a key lever to improve our profitability going forward.”
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