Banking group TSB axes 36 branches and cuts 250 jobs
Banking group TSB axes 36 branches and cuts 250 jobs
Banking group TSB has said it is closing 36 branches and cutting 250 jobs across the business.
Earlier this year the bank announced it would be taking steps to reduce cost across the group.
A spokesman from the bank said: ‘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.’
The move was revealed in TSB’s full-year financial results, which showed the business made a pre-tax profit of £237 million over 2023, nearly 30% more than the previous year.
The jump was driven by an increase in its income of more than £50 million, as it benefited from higher interest rates which have pushed up the cost of borrowing.
It proposed paying a dividend of £120 million to parent company Sabadell in the first quarter of this year as a result of the improved performance.
Nevertheless, the bank has a higher cost-to-income ratio than other lenders, such as rivals Santander UK and Virgin Money – meaning the amount it spends on running the business as a percentage of the amount it generates in income.
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