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

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.”

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.