![]() ![]() Core mortgages continued to grow despite management actions to manage volume in a highly volatile and competitive mortgage market. Total customer lending increased £0.7 billion (+1.8%) to £38.1 billion in 2022.However, TSB is yet to see this translate to a marked increase in customers experiencing financial difficulties or missing payments. The 2022 charge reflects the uncertain economic outlook and growing inflationary pressures for our customers. Credit impairment charges of £54.9 million increased significantly versus 2021 (£0.1 million), when the bank had exceptionally low charges following Covid-related impairment releases.TSB’s cost-to-income ratio (management basis) has improved by 11 percentage points to 70.4% (2021: 81.4%).Efficiencies have been made through reducing resource costs, lower property costs across the branch network, and reviewing supplier contracts. However, TSB’s operating costs measured on a management basis reduced by £21.0 million (-2.6%) to £776.3 million despite inflationary pressures, reflecting continued progress in simplifying the business. ![]() On a statutory basis, TSB’s costs have increased by £42.1 million (+5.1%) to £869.5 million in 2022, driven by the £48.7 million fine concluding the joint FCA and PRA investigation into the 2018 migration programme, as well as higher conduct-related costs.Net interest margin increased 13 basis points in 2022 to 2.57% (2021: 2.44%). This was partially offset by lower mortgage margins in a highly competitive market. Total statutory income increased £122.9 million to £1,107.9 million (+12.5% from £985.0 million in 2021) primarily reflecting the impact of lending growth and higher interest rates and deposit margins.Given the strong performance, TSB proposes to pay a dividend of £50 million to its parent company in the first quarter of 2023, subject to shareholder and regulatory approval.Profit measured on a management basis increased from £182.6 million to £271.6 million, up 49% year on year. This includes the impact of the fine from the FCA and PRA of £48.7 million relating to the 2018 migration programme. TSB has reported its highest statutory profit before tax since TSB relaunched in 2013, of £183.5 million, compared to £157.5 million in 2021.“I want to thank all of my colleagues for rising to meet the challenges of the past year and helping to build our customers’ money confidence, at a time when this has never been more important, as well as enthusiastically getting behind our growth strategy for the coming years.”įinancial Results (unaudited) for the full year 2022 And, for the first time, TSB will pay a dividend to our parent company, Sabadell. This includes balance sheet growth, reduced underlying costs, and improved overall profitability. “With a relentless focus on improving our service, and more satisfied customers, we have delivered a strong set of results for 2022. Robin Bulloch, TSB’s Chief Executive, said: “In challenging and unpredictable economic circumstances, TSB continues to be a relevant, purpose-driven brand offering the banking products and services our customers need most. ![]() TSB reports record statutory profit before tax of £183.5 million, up 16.5% on 2021 and proposes to pay Sabadell a dividend for the first time. ![]()
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