"We’ll continue to work closely with the Government, policymakers and regulators in an attempt to bring the full force of competition to bear on the UK banking market"
The Bank's figures show that it helped more than 38,000 homeowners to mortgage or remortgage in the nine month period.
TSB's operating costs increased 18.2% year-on-year to £612.4 million, driven primarily by a £90.5 million increase in outsourcing fees paid to Lloyds Banking Group.
The Mortgage Enhancement portfolio – a £3.4 billion residential mortgage loan book created in February 2014 to enhance TSB’s profitability – was also returned early, in June 2017.
This accelerated the delivery of profit to TSB in 2017, generating £61.7 million management profit before tax in the first nine months of 2017 compared with £36.1 million in the same period last year.
Profit before tax fell 1.3% to £147.3 million year-on-year, but excluding the increase in outsourcing fees and the effect of the early return of the Mortgage Enhancement, profit before tax grew 42% to £62.9 million.
Statutory profit before tax fell to £134.2 million, down 17% year-on-year due to the sale of its interest in Visa Europe (£32.5 million) which was recognised in June 2016.
TSB is also set to become the first major bank in the UK to design, build and launch its new banking platform.
Paul Pester, TSB Chief Executive Officer, commented: “Our high-tech transformation continues with TSB becoming the first major bank in the UK to have designed and built a new banking platform for the digital age.
“Looking forward, our new, state-of-the-art banking platform will be transformational as we continue on our mission to bring more competition to UK banking – both for consumers and local businesses. The new platform will position TSB well to compete for one of the grants from the Capability and Innovation Fund recently announced by the UK Government.
"Breaking the stranglehold of the big five banks remains top of our agenda and we’ll continue to work closely with the Government, policymakers and regulators in an attempt to bring the full force of competition to bear on the UK banking market – and ultimately make banking better for all UK consumers.”
