Sun. May 22nd, 2022

TSB returned to profit last year, as the UK bank was buoyed by an improved macroeconomic outlook and the strong mortgage market.

The lender swung from a loss of £ 204.6m in 2020 to a pre-tax profit of £ 157.5m last year.

Mortgages were a major driving force, with a record year for the bank. Its gross mortgage lending increased 46 per cent year on year to £ 9.2bn.

It was also able to almost completely reverse charges that it had taken for bad loans in 2020, with provisions falling from £ 164m to less than £ 1m. Core equity tier one, a measure of capital strength, rose by 1 percentage point to 15.8 per cent.

“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,” said Robin Bulloch, the bank’s interim chief executive.

The results are the bank’s first since Bulloch’s appointment following the departure of Debbie Crosbie, who left in December to take the top job at building society Nationwide.

Spanish bank Sabadell, which acquired TSB for £ 1.7bn in 2015, last November rejected an unsolicited offer from Co-operative Bank for the UK lender, although César González-Bueno, Sabadell chief executive, did not rule out a sale in the longer term.

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