TSB takes further £36 million hit over IT breakdown

TSB takes further £36 million hit over IT breakdown

The UK's TSB has taken a further £36 million charge related to last year's botched IT upgrade, adding to the £330 million it shelled out to cover the catastrophic bungle last year.

The UK lender is still haunted by its disastrous switch to a new IT platform from parent Banco Sabadell, which led to a prolonged series of outages for million of customers.

The bank lost 80,000 customers as the fiasco dragged on, but insists it has now drawn a line under the cock up, reporting a modest £21.1 million profit in the first half, versus a loss of £107.4 million in H1 2018.

Debbie Crosbie, TSB’s chief executive officer, says: “TSB has begun a new chapter, underpinned by improving business performance and strong fundamentals.

“We are beginning to see the benefits of our new platform for our customers, including a faster mortgage applications process and the introduction of new digital capabilities like identity verification on our mobile app."

TSB's mobile app usage has increased during the first half of the year with a 10% increase in users and improved ratings on leading app stores, she says. SME customers also have access to a faster digital service that has reduced the average time for onboarding, and a new mobile banking app.

IT incidents are in line with the industry, says Crosbie. "We’ve addressed all customer complaints in relation to migration and new customer complaints are at industry levels."

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