Closing branches is “never an easy decision” but TSB had too many for a bank of its size, its acting chief executive said today (January 27).
Robin Bulloch also insisted the high street bank was “doing the right thing” for customers.
He was speaking after TSB announced a return to the black in 2021, thanks to pre-tax profits of £157.5 million.
The better performance – after losses of £204.6m the year before – reflected an “improved economic outlook, sustained balance sheet growth and focused cost efficiency,” the Spanish-owned bank said.
Mr Bulloch has been at the helm as interim CEO since December, when it was announced Debbie Crosby was quitting TSB to take up the reins at Nationwide.
It blamed a further decline in the number of people visiting branches as more customers turn to online banking.
‘Banking deserts’
Campaigners have since raised concerns about the “disproportionate” impact of the cuts on vulnerable and elderly residents, who may be less comfortable with digital banking or cannot use it at all.
Age Scotland claimed the latest closures would lead to “banking deserts” across the north.
A raft of closures during 2021 saw TSB shut branches in Aberdeen, Aboyne, Alford, Banchory, Dingwall, Grantown, Huntly, Insch, Nairn, Turriff and Wick.
Earlier today, Mr Bulloch said closures across the branch network were dictated by falling demand for banks’ over-the-counter services.
“Closing branches is never an easy decision, but we had too many for a bank of our size he said, adding: “We’ve seen customer use falling, and their needs are changing.
“We will retain the seventh largest branch network in the country.
“The reach we have right across the UK is a big asset for our customers and for TSB.”
Mr Bulloch said the bank upgraded 135 branches during 2021 to “create spaces where customers can focus on spending time with colleagues, not just carrying out transactions”.
He continued: “Over 60% of branches are now equipped with self-serve deposit capabilities, and all branches have video banking capability.”
TSB said its total customer lending surged by 12.2%, or £4.1 billion, to £37.4bn last year, driven by a record £9.2bn of gross mortgage lending.
Customer deposits rose by 4.6%, or £1.6bn, to £36bn, which Edinburgh-based TSB said reflected a slower rate of growth, compared to 2020, as consumer spending increased.
Impairment losses reduced to £100,000, from £164m previously, while mortgage balance growth and higher current account income drove total revenue up 9.5%, or £85.3m, to £980m.
Mr Bulloch said: “The results reflect a bank that is more efficient, and a business that is delivering sustained growth.
“But what is even more encouraging is that we’ve achieved this growth by doing the right thing for our customers.
“I want to dial up even further the focus on our customers – continuing to give great service in branches and over the phone, whilst making further improvements to our digital and market place offering.”
We’ve achieved this growth by doing the right thing for our customers.”
Robin Bulloch, interim CEO, TSB.
Chief financial officer Declan Hourican added: “This is a strong set of results for TSB.
“Similar to other UK banks, 2021 performance has been supported by the UK economy performing better than expected.
“Our financial results demonstrate that we have made substantial progress in delivering our growth and efficiency strategy, with strong balance sheet and income growth, and making TSB a more efficient business through further reducing our cost base.
“The new lending market was buoyant in 2021, supported by high customer demand for house moves.”
TSB, part of the Spanish banking group Sabadell has previously said there is no prospect of branch transactions returning to pre-Covid levels.
More than 90% of its customer transactions are now carried out digitally, while video banking accounts for in excess of 90% of mortgage appointments.