The Spanish-owned bank recorded a pre-tax profit of £290.4m for 2024, up 22.4% on the previous year
High street lender TSB has reported a surge in profits for the past year, despite grappling with a “challenging mortgage market”.
The Spanish-owned bank boasted a pre-tax profit of £290.4m for 2024, marking a significant 22.4% increase from the previous year. TSB attributed the profit rise to cuts in operating expenses and impairment costs over the period.
Despite facing higher inflation and the new Bank of England levy, the company was buoyed by lower restructuring costs. Credit impairment charges also saw a sharp decline to £30.1m, less than half of what was reported the previous year, as the bank benefited from a less risky environment.
This financial upturn occurred even though TSB’s income dipped by 1.4% to £1.14bn due to shrinking mortgage margins. With customer lending experiencing a slight uptick of 0.2% year-on-year, TSB acknowledged the tough conditions in the mortgage market.
TSB’s chief executive, Robin Bulloch, said: “I am delighted that TSB has delivered another year of record results.” We are confident that we can achieve our future growth ambitions through better supporting customers with their financial goals while continuing to make the business fit for the future.”
Mr Bulloch added: “I want to thank all my colleagues for their contributions over the past year and for the dedication they continue to show in serving our customers now and into the future.”
The announcement follows news from last November that Mr Bulloch is set to leave his role early this year, with former director Marc Armengol stepping into the chief executive position. TSB announced on Friday that it will pay a £300m dividend to its Spanish parent company, Banco Sabadell.
