TSB saw total customer lending rise to £31.3 billion as they became the latest bank to feel the effects of the COVID-19 pandemic.
The group saw total impairment charges increase by £87.5 million in the first half of the year, reflecting a significant weakening in the economic outlook, including higher forecast unemployment and house price declines.
Total income fell 12 per cent to £445.5 million on the same period last year, whilst pre-tax profit swung to a loss of £65.5 million.
Despite the several economic and market challenges facing the UK over the rest of 2020, the bank remains well positioned to weather the downturn, with a healthy liquidity reserves meaning they remain committed to delivering its strategic plan announced in November 2019.
Commenting on the results, Debbie Crosbie, TSB’s Chief Executive, said: “We had a strong start to the year, but the external environment changed significantly when Covid-19 struck. We’ve benefited hugely from the technology platform we now have in place at TSB, enabling us to accelerate our digital offer for customers when they needed us most.
“Despite the challenging context, our balance sheet and capital position remain strong, we have improved efficiency in our operations, and our purpose to help people increase their money confidence has never been more relevant.
“I’m particularly proud of how TSB colleagues have responded, learning new skills, taking on new responsibilities, demonstrating real resilience, and above all putting customers first – showing TSB at its best.”
TSB also continued its £12 million investment in IT during the lockdown period, filling 80 of the 100 positions at TSB’s new IT centre in Edinburgh during this period
