News Column

TSB Reports Half-Year Pretax Profit Jump In Maiden Results

July 31, 2014

Samuel Agini

LONDON (Alliance News) - TSB Banking Group PLC Thursday reported a jump in first-half pretax profit, aided by a one-off GBP63.7 million gain on its withdrawal from Lloyds Banking Group's defined-benefit pension schemes.

Reporting for the first time since its debut on the stock exchange last month, when Lloyds sold a 38.5% stake in the bank, TSB said it made a GBP128.5 million pretax profit in the six months ended June 30, compared with GBP36.1 million in the corresponding period last year. Income increased by GBP297.9 million to GBP463.2 million, while operating expenses rose by GBP228.4 million to GBP333.5 million.

On a management basis, which strips out volatility arising from derivatives and the employee pension withdrawal gain, pretax profit rose to GBP78.6 million from GBP36.1 million.

"The first half of 2014 has been a strong six months for TSB Banking Group. The business completed its successful initial public offering, delivered financial performance consistent with expectations and made good initial progress in delivery of its growth strategy," Chief Executive Paul Pester said in a statement.

"I have been particularly pleased with the way in which consumers across Britain have reacted to TSB's 'local banking' model. This is reflected in our market share of current account switching and new current account openings of 9.2% for the quarter - well ahead of our target to achieve consistently above 6%," Pester added.

TSB shares were Thursday quoted up 0.4% at 283.25 pence.

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Source: Alliance News

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