TSB announces 10.6 percent profit fall
TSB has announced its statutory profits before tax fell 10.6 percent to £162.7m in 2017 from £182m the year before.
At 31 December 2017, total forborne loans were £363.1m, down from £371.1m in 2016, its annual report reveals. Of that, £59.2m of forborne loans were impaired, again down from £67m in 2016. The allowance for loan losses held in respect of forborne loans was £13.2m in 2017, down from £15.3m the year before.
The news comes as TSB is facing several regulatory investigations and questions from MPs after suffering a serious computer failure which left customers with issues accessing their accounts.
A Financial Conduct Authority spokesperson has said the regulator was “aware of the problem and liaising with the firm”.
Similarly, the Information Commissioner’s Office said it is “aware of a potential data breach in relation to the TSB and are making enquiries”.
The bank has also entered the crosshairs of the Treasury Committee, with chairwoman Nicky Morgan writing to Paul Pester, chief executive of TSB, to find out what has gone wrong and the extent of the failure.
“The reports of unauthorised transactions, access to other customers’ accounts, and failures of in-branch services have all the hallmarks of an IT meltdown,” she said. “This is yet another addition to the litany of failures of banking IT systems. Potentially millions of customers could be affected by uncertainty and disruption. Warm words and platitudes will not suffice.”
The bank warned its customers last week that it was carrying out upgrades at the weekend between 16:00 BST on Friday and 18:00 on Sunday, but problems persisted leaving some customers concerned about paying bills and accessing cash to pay for essentials.
However, some customers were left unable to access their accounts or make payments, while others were shown incorrect information, and in some cases the details other people’s accounts.
The issues stem from when TSB split from Lloyds Banking Group. It continued to rent a banking platform from Lloyds while it constructed its own, Proteo4UK.