Four years since launch, TSB continues on its mission to bring more competition to UK banking. These results demonstrate that a bank focused on serving local communities really can thrive. 

Highlights include:

TSB provided £5.8 billion of new mortgage advances to help more than 38,000 homeowners to get a better mortgage deal or buy a new home in the nine month period.
Customers continue to trust TSB with their money - with around 1,000 customers a day opening a TSB bank account, helping boost deposit balances to over £30 billion.
Customers continue to recommend TSB to friends and family with TSB’s Net Promoter Score (NPS)[1] at +24 for the nine month period.
TSB is set to become the first major bank in the UK to have designed and built a new state-of-the-art banking platform for the digital age. 
TSB customers are the first in Europe to use iris scanning security features to access their accounts with TSB’s mobile banking app.

Further highlights include:

TSB advanced £5.8 billion in new mortgage loans in the first nine months of 2017, up 17.5% on the same period last year from £4.9 billion.
Franchise customer lending (excluding the Whistletree portfolio) grew to £28.6 billion, up 18.8% (£4.5 billon) year-on-year from £24.1 billion.
Franchise customer lending (including the Whistletree portfolio) grew to £30.8 billion, up 15.5% (£4.1 billion) year-on-year from £26.7 billion.
6.4%[2] of all customers switching banks or opening a new account in the past 12 months chose TSB - in line with our long-term target.
Customer deposits grew to £30.3 billion, up 4.5% (£1.3 billion) year-on-year from £29.0 billion.
Management profit before tax of £147.3 million was 1.3% lower (£2.0 million) year-on-year. 
As expected, operating costs increased 18.2% year-on-year to £612.4 million, driven primarily by the £90.5 million increase in outsourcing fees paid to Lloyds Banking Group in the first nine months of 2017.
As reported at H1 2017, the Mortgage Enhancement portfolio - a £3.4 billion residential mortgage loan book created in February 2014 to enhance TSB’s profitability - was returned early, in June 2017. This accelerated the delivery of profit to TSB in 2017, generating £61.7 million management profit before tax in the first nine months of 2017 compared with £36.1 million in the same period last year - an increase of £25.6 million.
Excluding the increase in outsourcing fees and the effect of the early return of the Mortgage Enhancement, management profit before tax grew £62.9 million (42.1%) year-on-year from £149.3 million.
Statutory profit before tax fell to £134.2 million, down 17.0% (£27.4m) year-on-year from £161.6 million due to the non-recurring gain from the sale of our interest in Visa Europe (£32.5 million) which was recognised in June 2016.
TSB’s liquidity is robust while our capital position remains one of the strongest of the UK banks with a common equity tier one ratio of 18.9%.

Paul Pester, TSB Chief Executive Officer, commented: “When we launched TSB in 2013, we set out to break the stranglehold of the big five banks and bring a different sort of banking to the UK. Four years on, our latest set of results show TSB has cemented its positon as Britain’s challenger bank and that a bank focused on serving local communities really can thrive.

“Our high-tech transformation continues with TSB becoming the first major bank in the UK to have designed and built a new banking platform for the digital age. Customers are already starting to see the benefits as they are the first in Europe to use iris scanning security with TSB’s mobile banking app - accessing their accounts simply by glancing at their phones. And I’m also delighted to announce that TSB customers will be amongst the first to use Apple’s new facial recognition technology to log in to their TSB account. 

“Looking forward, our new, state-of-the-art banking platform will be transformational as we continue on our mission to bring more competition to UK banking - both for consumers and local businesses. The new platform will position TSB well to compete for one of the grants from the Capability and Innovation Fund recently announced by the UK Government. Breaking the stranglehold of the big five banks remains top of our agenda and we’ll continue to work closely with the Government, policymakers and regulators in an attempt to bring the full force of competition to bear on the UK banking market - and ultimately make banking better for all UK consumers.”