TSB has published its results for the three months to 31 March 2016.
Customer lending totalled £27.4 billion, up £1 billion (3.9%) on the previous quarter. Meanwhile, ‘franchise’ customer lending was £22.4 billion, up £1.3 billion (6.1%) on the previous quarter as more customers chose TSB as the destination for their mortgage.
7.1% of all customers opening a new bank account or switching banks chose TSB in Q1 2016, the ninth consecutive quarter in which TSB has exceeded its 6% target.
Customer deposits were £26.8 billion, up £900 million (3.5%) on the previous quarter.
Profits were double that of the previous quarter to £59.9 million (management basis), a rise of 75% on Q1 2015.
Paul Pester, TSB’s CEO, said: “I’m delighted that TSB has kicked off the year with a hat trick of successes. As customers continue to vote with their feet and move their banking to TSB we’ve seen a record growth in our customer deposits, a record number of people choosing TSB for their mortgage, and more customers than ever before willing to recommend TSB to friends and family.
“However, there’s plenty to do as we continue on our mission to bring more competition to UK banking. The extra firepower we now have behind us from Sabadell is helping us to take on the big banks in new areas, such as through our new “Pick and Protect” home insurance product.
“So, whilst I think TSB is doing its bit to break the stranglehold the big five banks have on the UK market, we can’t do this alone. We need the CMA to use the once in a generation opportunity they have to help us bring the full force of competition to bear on the UK banking market. We want all bank customers to know what they’re paying for their banking; all customers – including overdraft users – to be able to switch easily; and all customers to be aware of their right to switch banks. Only then will competition really start to work and the culture of UK banks finally shift to serving customers on their terms – rather than on the banks.”