TSB has blamed the Financial Services Compensation Scheme levy for its pre-tax profit fall of 20.1 per cent in the first six months of this year compared to the last half of last year.
Its half yearly report, published today (23 July), revealed that its pre-tax profits for the six months to 30 June were £44m.
The results stated profits overall were down due to lower average loan balances and the recognition of the full year FSCS levy charge of £14.8m in the first half of 2015.
The TSB mortgage broker service, launched in January 2015, and today’s results revealed it has received £1.9bn of gross mortgage applications to the end of the first half of 2015.
Gross lending through the TSB mortgage broker service channel totalled £665m for the first six months of this year.
Bosses stated the statutory profit before tax, which fell 44.4 per cent to £23.2m when compared to the last six months of 2014, was further reduced by Sabadell transaction related costs.
The UK challenger bank was bought by Spanish bank Banco Sabadell on 30 June.
On 30 June 2015, Sabadell submitted an application to delist TSB’s shares from the official list of the London Stock Exchange. This is expected to be effective from 28 July 2015.
Paul Pester, TSB’s chief executive, said: “TSB continues to go from strength to strength. Customers are really starting to see TSB as a destination for their mortgages, making us one of the fastest growing mortgage providers in the UK.
“On top of this, customers continue to vote with their feet and, for the sixth successive quarter, we exceeded our target of winning more than 6 per cent of all customers opening or switching bank accounts in the UK.
“With the extra firepower of Sabadell behind us, we look forward to accelerating our growth plans and continuing to take on the big banks that have had a stranglehold on the UK market for far too long.”
emma.hughes@ft.com
