TSB plans bank branch closures and job cuts this year to reduce costs across group
The CEO of TSB's parent company says bank branch closures and job cuts are included in the cost-cutting plans
PA
TSB could cut jobs and close bank branches this year as the bank plans to cut costs across the group.
The bank has set aside £29million for a programme of initiatives to help manage business expenses.
When asked if the provision for restructuring costs would include a reduction in bank staff and branches, Sabadell CEO Cesar Gonzalez-Bueno said: “Yes, it will include both.”
The CEO did not provide a number of how many cuts and closures could be announced.
TSB currently has 5,426 employees and 211 bank branches
PA
TSB said it would speak to staff before announcing any more details about potential job losses or bank branch closures.
A TSB spokesperson said: “We have been clear about our focus on reducing costs, but as with any announcements about changing how we operate, we always consult with our colleagues first.”
TSB’s full-year financial results showed the business made a pre-tax profit of £237million over 2023, nearly 30 per cent more than the previous year.
Its income increased by more than £50million as the bank benefitted from higher interest rates, which have pushed up the cost of borrowing.
TSB said, given the strong performance, it is proposing paying a dividend of £120million to parent company Sabadell in the first quarter of this year, subject to shareholder and regulatory approval.
The bank has improved its cost to income ratio from 104.4 per cent in 2020 to 73.6 per cent in 2023.
However, the bank has a higher cost to income ratio than other lenders, such as rivals Santander UK and Virgin Money.
Robin Bulloch, TSB’s Chief Executive Officer, said: “We are reporting another year of sustained profitability, demonstrating the impact of both our continued focus on customers, delivering products and services that genuinely meet their needs, and the work to make TSB a simpler, more efficient, and resilient bank.
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“Throughout the cost-of-living challenges, our Money Confidence purpose has resonated strongly with our customers – and I’d like to thank everyone at TSB for their continued hard work to step up to support them.”
TSB currently has 5,426 employees and 211 bank branches.
TSB has closed 339 bank branches since January 2019, according to Which?.