In response to a news report by Sky, TSB has commented on Sabadell CEO Cesar Gonzalez-Bueno’s remarks regarding a £29 million provision for restructuring within the UK bank.
A TSB spokesperson stated: “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.”
This week, TSB announced a statutory profit before tax of £237.2 million for 2023, marking an increase of £53.7 million (29.3%) from 2022. Consequently, the proposed dividend to Sabadell has been raised to £120 million.
TSB’s CEO, Robin Bulloch, remarked: “We are reporting another year of sustained profitability, demonstrating the impact of both our continued focus on customers and our efforts to make TSB a simpler, more efficient, and resilient bank. Despite the cost-of-living challenges, our Money Confidence purpose has resonated strongly with our customers, and I want to thank everyone at TSB for their hard work in supporting them.”
These results reflect a series of cost-saving initiatives set to take effect from 2024. TSB emphasized that their strategy includes simplification and efficiency, having improved their cost-to-income ratio from 104.4% in 2020 to 73.6% in 2023.
However, TSB’s cost-to-income ratio remains relatively high compared to competitors such as Santander UK, which reported a ratio of 53% on an adjusted basis, and Virgin, which indicated a ratio of 51.9% in November 2023.