TSB has reported a fall in profits, despite attracting more deposit and mortgage money. The bank made £5.8 bn of mortgage advances in the nine mo
TSB has reported a fall in profits, despite attracting more deposit and mortgage money.
The bank made £5.8 bn of mortgage advances in the nine months to 30 September 2017, up 17.5 per cent from £4.9bn for the same period last year.
Deposit balances were up 4.5 per cent to £30.3bn from £29bn.
But statutory profit before tax fell to £134.2m, down 17 per cent year-on-year.
TSB said the fall was due to the non-recurring gain from the £32.5m sale of its interest in Visa Europe, which had inflated last year’s figures.
TSB is also close to launching what it calls a ‘state of the art banking platform for the digital age.
Earlier in the year it announced that the platform will provide a full suite of banking services – including current accounts, debit cards, credit cards and savings accounts – as well as to provide mortgage brokers with access to TSB mortgages.
TSB is using iris scanning security features for access to accounts using the bank’s mobile banking app. Customers will also be able to use Apple’s new facial recognition technology to login to their TSB account and, going forward, the new platform will enable us to be more agile in responding to customers’ needs as they evolve.
The bank says that when completed, the new platform will reduce TSB’s costs considerably. However it said the roll-out will have an impact on profitability in 2018.
Paul Pester, TSB chief executive officer, commented: “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. 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.
“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.”