TSB profits bounceback from Covid lows as mortgage lending recovers
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Profits recovered from Covid lows at bank TSB, driven by the lender reporting lower loan-loss provisions as a wave of predicted defaults triggered by Covid failed to materialise and improved mortgage lending.
The bank registered a net profit of £42.9m in the first half of this year compared to a loss of £65.5m in the same period a year ago.
Read more: Rush to beat stamp duty deadline drives mortgage borrowing to record high
Stronger mortgage lending drove customer lending 13.7 per cent higher compared to a year ago as prospective homebuyers rushed to take advantage of the stamp duty holiday.
The bank’s loan-loss provisions fell £86.4m annually, driven by an improved economic environment averting a rush of defaults forecasted at the onset of Covid.
TSB recored a common equity tier 1 ratio of 14.4 per cent and net-interest margins were flat.
Debbie Crosbie, TSB’s Chief Executive, said: “These results show a significant improvement on last year and demonstrate the impact of our Money Confidence purpose in delivering for our customers.
“With a relentless focus on what our customers want and innovating to serve them better, we have grown our balance sheet and increased income, while reducing operating costs further.”
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