Record mortgage lending sees TSB swing back to profit

TSB has swung back to profit thanks to record mortgage lending and a bounceback in the wider economy.

The Spanish-owned high street bank posted a statutory profit before tax of £157.5 million for 2021 against losses of £204.6m in 2020.

It comes after the bank notched up its highest-ever gross mortgage lending at £9.2 billion for the year, up 46 per cent on a year earlier.

TSB’s results come less than two months after it announced the closure of 70 bank branches across the UK, taking its network down from 290 to 220 by the end of June 2022.

TSB’s results come less than two months after it announced the closure of 70 bank branches across the UK, taking its network down from 290 to 220 by the end of June 2022. Picture: John Devlin

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The figures also follow a failed attempt in October by rival Co-operative Bank to buy TSB from owner Banco de Sabadell, which rejected the unsolicited offer.

The full-year results were boosted by surging demand for mortgages amid a buoyant housing market. A recovering UK economy is also helping to drive bank profits, with losses for loans turned sour far lower than the sector expected.

Robin Bulloch, TSB’s interim chief executive, said: “This is a great set of results. With a focus on delivering our Money Confidence purpose, we have seen outstanding income growth in 2021, made improvements in the products and services we offer customers, and become a more efficient and resilient bank.

“I want to thank everyone at TSB for their collective efforts in delivering this, as well as their ongoing work to help our customers and communities feel more money confident.”

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Bulloch took over on an interim basis last month after former Scots-born boss Debbie Crosbie was hired to the top job at Nationwide Building Society.

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