TSB customer numbers grow as it calls for market reform

High street bank TSB has hailed a first-quarter hat-trick as it doubled profits and called for more competition in the market.

The bank said it had seen record growth in customer deposits, record number of people choosing TSB as the home for their mortgage and record number of customers recommending TSB to friends and family in the three months to March 31.

It said customer deposits rose 3.5% to £26.8billion with total customer lending climbing 3.9% to £27.4billion helped by demand for mortgages. Over 1,200 customers joined the bank every day in the first quarter, up 25% on last year.

Profits doubled on the previous to £59.9million, up 75% on the first quarter last year.

“TSN has kicked off the year with a hat trick of successes and customers continuing to vote with their feet and move their banking to TSB,” said chief executive officer Paul Pester. “However, there’s plenty to do as we continue on our mission to bring more competition to UK banking and break the stranglehold the big five banks have on the market.”

He called on the Competition and Markets Authority to use the “once in a generation opportunity” to bring the full force of competition on UK banking.

“We want all bank customers to know what they’re paying for their banking. All customers including overdraft users should be able to switch banks easily and all customers need to be aware of their right to switch,” he said. “Only then will competition really start to work and the culture of UK banks finally shift to serving customers on their terms rather than on the banks.”