TSB plans jobs cuts and branch closures to save £29m, parent firm reveals

02 February 2024 , 15:45

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TSB could cut jobs and close branches in a bid to reduce costs (Image: PA Archive/PA Images)

TSB is planning job cuts and branch shut downs as it aims to cut save £29m.

The boss of of TSB's Spanish owner Sabadell, Cesar Gonzalez-Bueno said the plans would "include both" staff reductions and branch closures. Before revealing further details on potential job losses or closures across its hundreds of UK branches, TSB said it will have discussions with the staff first.

The bank's spokesperson 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." These plans were uncovered in TSB's yearly financial results, which showed the business made a pre-tax profit of £237 million over 2023, a nearly 30% increase compared to the previous year.

Boosted by more than £50 million in income from higher interest rates, the bank has benefited. It suggested paying a dividend of £120 million to parent company Sabadell in the first quarter of this year, due to better performance.

However, the bank's cost-to-income ratio is higher than other lenders like Santander UK and Virgin Money. This means it spends more on running the business compared to the income it generates. The bank is working hard to lower this percentage by simplifying its operations and boosting efficiency.

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In other news, Deutsche Bank announced plans last Thursday to cut 3,500 jobs by year-end in a bid to save around £2.1 billion and boost profits. Just last week, Lloyds Banking Group revealed it was cutting about 1,600 jobs across its branches as it moves towards online and mobile banking.

* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]

Lawrence Matheson