TSB picks up customers

Newly independent TSB reports it is attracting more new customers than it had expected.

The bank, which earlier this year was spun off as a separate business by Lloyds Banking, said nearly one in 10 new bank account customers in the UK were choosing TSB.

Profits for July to September were 14% lower than a year earlier at £33.1m, after operating expenses rose. However revenue for the third quarter swelled 18% to £199m.

As a condition of its bail-out during the financial crisis, owner Lloyds floated a 38.5% stake in TSB on the London Stock Exchange in June.

Chief executive Paul Pester said “While we have always been clear that we are on a five-year journey to grow TSB, it’s great to see people right across Britain continuing to vote with their feet for TSB’s local banking model,”

“Nearly one in 10 of all customers who opened new bank accounts or switched during the last quarter chose TSB – this is well ahead of our long-term target and is testament to the great service our TSB partners continue to deliver.”

The bank is the UK’s seventh biggest lender.