TSB Bank plc said on Friday that its customer deposits rose £2.7 billion or 9% to £32.9 billion in the first half of 2020 “primarily reflecting lower levels of consumer spending and an increase in business banking deposits.”

TSB Bank is currently owned by Spain’s Banco Sabadell.

TSB reported a statutory loss before tax of £65.5 million, compared to a pre-tax profit of £21.1 million in the first half of 2019.

Impairment losses soared to £111 million during the six months.

Total income fell 12% to 445.5 million compared to the first half of 2019.

Credit impairment charges increased by £87.5 million compared to H1 2019 “reflecting a significant weakening in the economic outlook, including higher forecast unemployment and house price declines.”

Total customer lending rose 0.6% to £31.3 billion in the first half and was up 2.9% year-on-year “with growth in business lending and stable core mortgages offset by lower unsecured balances.”

TSB Bank CEO Debbie Crosbie said: “We had a strong start to the year, but the external environment changed significantly when Covid-19 struck.

“We’ve benefited hugely from the technology platform we now have in place at TSB, enabling us to accelerate our digital offer for customers when they needed us most. 

“Despite the challenging context, our balance sheet and capital position remain strong, we have improved efficiency in our operations, and our purpose to help people increase their money confidence has never been more relevant.”