TSB has reported a statutory profit before tax of £350.4 million for 2025, up 20.7% on 2024.

Sabadell Group agreed last July to sell TSB to Santander Group for an eventual sale price estimated at £2.9 billion, subject to regulatory approval. The transaction is expected to complete in 2026.

TSB CEO Marc Armengol said: “2025 was an extraordinary year for TSB. Our record financial performance was underpinned by the committed, collective effort of my colleagues: stepping up to ensure we stay truly competitive, deliver money confidence for our customers, act responsibly and run the bank more efficiently.”

TSB has five million customers and around 4,700 staff.

TSB said income increased in 2025 by 3.6% year-on-year to £1.183 billion in 2025 “reflecting higher structural hedge income from a stable base of deposit balances.”

Total customer lending at TSB remained broadly flat at £36.3 billion for 2025 year-end. Total customer deposits also remained broadly flat at £35.2 billion for 2025 year-end.

TSB’s Net Interest Margin (NIM) was up 21 basis points from 2.68% in 2024 to 2.89% in 2025.

Operating expenses in 2025 reduced by 4.4% to £786 million “reflecting continued cost control, and the implementation of strategic initiatives to further simplify the business.”

The TSB balance sheet has strengthened with Common Equity Tier 1 ratio of 16.7% and Liquidity Coverage Ratio of 204.8%.