TSB profit tops £157m as lending soars to £37bn

TSB CEO Robin Bulloch

TSB Bank plc said on Thursday it made a statutory profit before tax for 2021 of £157.5 million compared to a pre-tax statutory loss of £204.6 million in 2020.

Total customer lending in 2021 increased by £4.1 billion to £37.4 billion — with the growth driven by a record £9.2 billion of gross mortgage lending.

Customer deposits increased by £1.6 billion to £36 billion, reflecting a slower rate of growth compared to 2020 as consumer spending increased.

TSB is currently owned by Spain’s Banco Sabadell.

The bank said its total income “as measured on a management basis” increased £85.3 million to £980  million in 2021.

“This reflects core mortgage balance growth and higher current account income,” said TSB.

“A lower proportion of unsecured balances is the primary driver of a 0.03% reduction of TSB’s Net Interest Margin to 2.44% …

“The balance sheet remains resilient, with a Common Equity Tier 1 ratio of 15.8% and Liquidity Coverage ratio of 194%.”

TSB interim CEO Robin Bulloch said: “This is a great set of results.

“With a focus on delivering our Money Confidence purpose, we have seen outstanding income growth in 2021, made improvements in the products and services we offer customers, and become a more efficient and resilient bank.

“I want to thank everyone at TSB for their collective efforts in delivering this, as well as their ongoing work to help our customers and communities feel more money confident.”