Proactiveinvestors United Kingdom TSB Banking Group https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom TSB Banking Group RSS feed en Fri, 24 May 2019 13:07:10 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - TSB launches guarantee to refund victims of authorised payment fraud ]]> https://www.proactiveinvestors.co.uk/companies/news/218575/tsb-launches-guarantee-to-refund-victims-of-authorised-payment-fraud-218575.html TSB has launched a “fraud refund guarantee” to cover customers that fall victim to any financial scams, including those involving authorised payments.

The bank, which has around 5.2mln customers, said the guarantee would apply to losses incurred by its account holders from 14 April.

READ: TSB slumps to annual loss after spending £330mln on IT meltdown

At the moment, banking users can usually only claim money back if a fraudster takes it from their account without their knowledge.

If they have been tricked into authorising a transaction from their account to the fraudster, they are less likely to be repaid as they have approved the payment.

According to data from trade body UK Finance, this type of fraud, known as authorised push payment, cost around £354mln in 2018  and affected over 83,800 people.

However, under TSB’s new guarantee customers would still be able to make a fraud claim under this type of scam, although the bank stressed that customers abusing the system by committing fraud on themselves or ignoring safety advice would not be reimbursed.

Richard Meddings, TSB’s acting chief executive, told BBC Radio 5 Live that the new guarantee would offer “piece [sic] of mind to our customers”.

"The vast majority of fraud claims across UK banking are from innocent victims of fraud who have been targeted by criminals and organised gangs. However, all too often these customers must fight to be refunded and are not treated as victims of crime".

The guarantee comes as the banking group tries to repair its reputation following an IT meltdown last year that left around 1.9mln customers without access to their accounts.

The debacle resulted in a £330mln hit to the group’s profits, causing it to swing to a statutory loss before tax for 2018 of £105.4mln from a profit of £162.7mln in the prior year, as well as costing it 80,000 customers.

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Mon, 15 Apr 2019 09:19:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218575/tsb-launches-guarantee-to-refund-victims-of-authorised-payment-fraud-218575.html
<![CDATA[News - TSB slumps to annual loss after spending £330mln on IT meltdown ]]> https://www.proactiveinvestors.co.uk/companies/news/213795/tsb-slumps-to-annual-loss-after-spending-330mln-on-it-meltdown-213795.html TSB slumped to a full-year loss after taking a £330mln hit related to the bank’s computer systems meltdown.

The bank, owned by Spain’s Banco de Sabadell, reported a statutory loss before tax for 2018 of £105.4mln, compared to a profit of £162.7mln the prior year.

TSB lost about 80,000 customers last year after about 1.9 million people were locked out of their accounts for weeks.

READ: Spanish lender Sabadell plans to sell IT crisis-hit TSB after turnaround

The systems crashed when TSB tried to switch from a platform with former owner Lloyds Banking Group PLC (LON:LLOY) over to a new one created by Sabadell in April.

TSB said it had resolved about 90% of the 204,000 customer complaints since the IT meltdown. More than 20,000 complaints remain unresolved.

The cost of customer compensation has reached £125mln while the bank also had to spend £49.1mln to deal with fraud and £122mln to hire new staff to handle complaints. It also suffered £33.5mln in foregone fees in a bid to retain customers.

"Last year was TSB's most challenging year. But we enter 2019 with a renewed ambition to re-emerge as the leading challenger bank in the UK - firmly on the side of the customer,” said TSB chairman Richard Meddings.

TSB executives will forgo their bonuses for 2018 but staff received a bonus of £1,500 each before Christmas to reward them for handling the IT chaos. 

Last month Sabadell revealed that it plans to eventually merge or sell its TSB business.  Sabadell’s chairman Josep Oliu said once the group returns TSB to profitability it would look at its options for the UK bank.

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Fri, 01 Feb 2019 08:32:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213795/tsb-slumps-to-annual-loss-after-spending-330mln-on-it-meltdown-213795.html
<![CDATA[News - Spanish lender Sabadell plans to sell IT crisis-hit TSB after turnaround ]]> https://www.proactiveinvestors.co.uk/companies/news/210767/spanish-lender-sabadell-plans-to-sell-it-crisis-hit-tsb-after-turnaround-210767.html Spanish lender Banco Sabadell has revealed that it plans to eventually merge or sell its TSB business, which was hit by an IT meltdown earlier this year.

Sabadell’s chairman Josep Oliu said once the group returns TSB to profitability it would look at its options for the UK bank.

READ: TSB's IT meltdown costs its Spanish owner €88mln in the third quarter

“The aim is that TSB enters into a process of consolidation in the future in Britain,” he told the Expansion newspaper at an event in New York.

Oliu said Sabadell will present a turnaround plan for TSB in January, which will last for at least two years.

“Afterwards we will enter into the consolidation process,” he said.

TSB was hit by a costly IT issue in April, leading to the resignation of chief executive Paul Pester a few months later. The IT problem, which continued for months, locked thousands of customers out of their accounts online.

The system crashed when TSB migrated its online platform from its former owner, Lloyds Banking Group PLC (LON:LLOY), to a new one built by new parent Sabadell. 

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Fri, 07 Dec 2018 09:38:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210767/spanish-lender-sabadell-plans-to-sell-it-crisis-hit-tsb-after-turnaround-210767.html
<![CDATA[News - TSB's IT meltdown costs its Spanish owner €88mln in the third quarter ]]> https://www.proactiveinvestors.co.uk/companies/news/207927/tsb-s-it-meltdown-costs-its-spanish-owner-88mln-in-the-third-quarter-207927.html TSB’s (LON:TSB) IT meltdown earlier this year cost its owner, Banco Sabadell, €88mln in the third quarter, the Spanish financial services group said on Friday.

As many as 1.9mln TSB customers were left unable to access their own money in April, after the bank tried to introduce a new computer system, resulting in an enquiry from the City regulator and the resignation of the bank's chief executive Paul Pester last month.

READ: TSB saw over 20,000 customers ditch bank in second quarter in wake of IT meltdown, according to BACS data

TSB’s owner, Banco Sabadell, said third-quarter profits fell 37.4% to €127.2mln.

These costs followed an extraordinary charge of €203mln for the outage in the second quarter when TSB experienced a net loss of 16,641 current account customers.

The extraordinary costs related to the TSB outage included an increase in interest rates on its premium account, impacted commissions and fraud losses, the bank said.

TSB suffered further computer problems in September which could also bring further switching of customer accounts elsewhere. 

The embattled British bank's customer service has also come in for heavy criticism, with almost half of its customers rating the bank as ‘poor’.

The bank's former CEO Pester had been at the helm for seven years and oversaw the separation of TSB from Lloyds and its subsequent takeover by Spanish giant Santander in 2015.

The 54-year-old had previously resisted calls to quit in the wake of the IT failings but agreed to step down last month.

Chairman Richard Meddings will take on the role of chief executive until a permanent successor is found.

 

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Fri, 26 Oct 2018 09:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207927/tsb-s-it-meltdown-costs-its-spanish-owner-88mln-in-the-third-quarter-207927.html
<![CDATA[News - TSB saw over 20,000 customers ditch bank in second quarter in wake of IT meltdown, according to BACS data ]]> https://www.proactiveinvestors.co.uk/companies/news/207739/tsb-saw-over-20000-customers-ditch-bank-in-second-quarter-in-wake-of-it-meltdown-according-to-bacs-data-207739.html TSB saw over 20,000 customers ditch the Spanish-owned bank in the wake of an IT meltdown earlier this year, according to figures released by the payments operator BACS.

Data from the body, which operates the seven-day current account switch service (CASS), showed 21,790 people left TSB in the second quarter of this year between April and June, with a net gain/loss figure of -16,641.

READ: TSB boss Paul Pester finally steps down in wake of IT ‘upgrade’ fiasco

As many as 1.9mln TSB customers were left unable to access their own money in April, after the bank tried to introduce a new computer system, resulting in an enquiry from the City regulator and the resignation of the bank's chief executive, Paul Pester in September.

The Financial Conduct Authority is still considering whether to fine the bank after it was judged to have misled Parliament over the issue.

TSB suffered further computer problems in September which could also bring further switching of customer accounts elsewhere.

The next biggest customer loser in the quarter, according to the BACS data, was Royal Bank of Scotland Group PLC (LON:RBS) which saw 14,445 customers switch their accounts elsewhere between April and June, with a net gain/loss of -12,362.

The biggest gainers were the Nationwide Building Society, which attracted an extra 34,577 customers, and HSBC PLC (LON:HSBA) – owner of internet bank First Direct  - which gained 25,605 customers.

Overall, BACS said a total of 693,422 switches have taken place since the start of this year with 193,621 completing in the last quarter alone – July to September 2018.

Between 1 October 2017 and 30 September 2018, 941,122 switches were completed – up 5% on the previous 12 months – the banking body added.

Since CASS was launched in 2013, BAC said over 5.1mln bank current account successful switches have taken place.

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Wed, 24 Oct 2018 08:37:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207739/tsb-saw-over-20000-customers-ditch-bank-in-second-quarter-in-wake-of-it-meltdown-according-to-bacs-data-207739.html
<![CDATA[News - TSB boss Paul Pester finally steps down in wake of IT ‘upgrade’ fiasco ]]> https://www.proactiveinvestors.co.uk/companies/news/204117/tsb-boss-paul-pester-finally-steps-down-in-wake-of-it-upgrade-fiasco-204117.html The boss of TSB has resigned from the troubled bank for his handling of a major IT failure which left almost 2mln customers locked out of their accounts for several weeks.

Since April, TSB has been hampered by a series of technology failures which are yet to be fully resolved following a botched IT ‘upgrade’.

READ: TSB reports big first half loss after botched IT update

On Monday, the bank was forced to apologise to customers who had once again faced disruption to their online banking services.

TSB’s customer service has also come in for heavy criticism, with almost half of its customers rating the bank as ‘poor’.

Pester has been at the helm for seven years and oversaw the separation of TSB from Lloyds and its subsequent takeover by Spanish giant Santander in 2015.

The 54-year-old has previously resisted calls to quit in the wake of the IT failings but has now agreed to step down.

Chairman Richard Meddings will take on the role of chief executive until a permanent successor is found.

“Although there is more to do to achieve full stability for customers, the bank's IT systems and services are much improved since the IT migration,” said Meddings.

“Paul and the board have therefore agreed that this is the right time to appoint a new CEO for TSB.”

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Tue, 04 Sep 2018 09:28:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204117/tsb-boss-paul-pester-finally-steps-down-in-wake-of-it-upgrade-fiasco-204117.html
<![CDATA[News - TSB reports big first-half loss due to costs related to botched IT update earlier this year ]]> https://www.proactiveinvestors.co.uk/companies/news/201726/tsb-reports-big-first-half-loss-due-to-costs-related-to-botched-it-update-earlier-this-year-201726.html TSB has reported a first-half pre-tax loss of over £100mln reflecting the impact of costs related to a botched IT update which plunged the lender into chaos for weeks earlier this year.

In a statement on its website, the lender - which is owned by Spain’s Banco Sabadell - said it had recognised costs related to the IT outage of £176.4mln, while the update itself cost £318mln.

READ: TSB ignored warnings IT system was not ready before disastrous switchover, says union

The group’s statutory pre-tax loss for the six months to 30 June 2018 was £107.4mln, against a profit of £108.3mln at the same stage in 2017.

As at 30 June 2018, TSB said its total customer lending was £31.0bn, total customer deposits stood at £29.6bn and its Common Equity Tier 1 capital ratio remained strong at 19.2%.

The firm said around 26,000 customers switched their bank account away from TSB in the period, although more than 20,000 customers opened a new bank account or switched their account to TSB in the second quarter of the year.

TSB’s CEO Paul Pester said: “We’re making progress in resolving the service problems customers experienced following our IT migration, and we will continue to work tirelessly until we have put things right.”

He added: “Our priority in the second half of the year continues to be putting things right for our customers.  Looking further ahead we are determined to get back to bringing more competition to UK banking and ultimately making banking better for consumers and small businesses.”

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Fri, 27 Jul 2018 08:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/201726/tsb-reports-big-first-half-loss-due-to-costs-related-to-botched-it-update-earlier-this-year-201726.html
<![CDATA[News - TSB ignored warnings IT system was not ready before disastrous switchover, says union ]]> https://www.proactiveinvestors.co.uk/companies/news/199763/tsb-ignored-warnings-it-system-was-not-ready-before-disastrous-switchover-says-union-199763.html TSB ignored employees' warnings that the bank was not ready to switch over its IT system in the months leading up to the online banking meltdown, according to a union.

The TBU union claimed in newsletters for its members at TSB that staff were pressured to work overtime to meet the deadline for the system upgrade.

The newsletter, which was published by MPs on the Treasury Select Committee on Thursday, said staff were worked to a “frazzle” and some were not given enough time to complete required training.

READ: TSB to be probed by FCA over handling of the bank’s ongoing IT problems

It claimed staff faced a “sickness epidemic” with absences increasing by 25% in some business areas due to the stress of dealing with disgruntled customers following the IT crash.

Staff were “teetering on the brink of collapse with staff working 12-hour shifts without breaks” and dealing with “levels of abuse never seen before,” the documents said.

Hundreds and thousands of customers were unable to access their accounts for weeks after TSB attempted to migrate its retail operations from a system run by former owner Lloyds Banking Group PLC (LON:LLOY) to a new one built by a subsidiary of its new Spanish owner, Sabadell, at the end of April.

The Financial Conduct Authority is investigating the issue. 

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Thu, 28 Jun 2018 08:52:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/199763/tsb-ignored-warnings-it-system-was-not-ready-before-disastrous-switchover-says-union-199763.html
<![CDATA[News - TSB to be probed by FCA over handling of the bank’s ongoing IT problems ]]> https://www.proactiveinvestors.co.uk/companies/news/198362/tsb-to-be-probed-by-fca-over-handling-of-the-banks-ongoing-it-problems-198362.html TSB is to be probed by the Financial Conduct Authority (FCA) over the banking group’s response to the handling of its ongoing IT problems, media reports have said.

The lender, which was bought in 2015 by Spanish bank Sabadell, had a major IT problem last month affecting its 1.9mln online customers that followed migration of its computer systems to a new platform developed by its parent.

READ: TSB refused help from former owner Lloyds in IT system crash

On Wednesday, Reuters reported, UK lawmaker’s criticised TSB boss Paul Pester over the situation and made public a letter from the FCA’s chief executive, Andrew Bailey to members of the Treasury Select Committee revealing the investigation.

Pester is due to testify before the Treasury committee later on Wednesday about how the bank is handling the crisis, which has left thousands of customers unable to make vital payments, while others have had accounts emptied by fraudsters taking advantage of the disarray.

He previously worked at TSB’s previous owner, Lloyds Banking Group PLC (LON:LLOY) on a project to separate the business in 2014 prior to a short-lived flotation of the business before it was snapped up by the Spanish.

A report last month said TSB had declined an offer from its former owner to help sort out the IT crash.

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Wed, 06 Jun 2018 10:56:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/198362/tsb-to-be-probed-by-fca-over-handling-of-the-banks-ongoing-it-problems-198362.html
<![CDATA[News - TSB refused help from former owner Lloyds in IT system crash ]]> https://www.proactiveinvestors.co.uk/companies/news/197003/tsb-refused-help-from-former-owner-lloyds-in-it-system-crash-197003.html TSB reportedly declined an offer from its former owner Lloyds Banking Group PLC (LON:LLOY) to help sort out its IT crash.

More than 1.9 million online TSB customers were unable to access their accounts after a botched upgrade to the bank’s IT systems last month.

TSB was transferring over accounts and customer information from a Lloyds system to one designed by its current owner, Spanish lender Sabadell.

The bank was sold by Lloyds to Sabadell in 2015 but TSB continued to pay to use its former owner’s IT systems while it designed a new platform.

Lloyds got in touch with TSB on the morning of April 23 to offer assistance in resolving the issues, the Financial Times reported.

However, TSB turned down the offer.

TSB may have 'hoped to get away with it', says MP

Labour MP on the cross-party Treasury select committee, John Mann, told the FT that TSB’s refusal to accept a hand from Lloyds showed that it failed to acknowledge the scale of the problem.

Mann said it was a sign that TSB may have been “hoping to get away with it”.

“They were playing fast and loose with the customers and also with their reputation, which has been so damaged by it now,” he told the newspaper.

TSB 'calls in the calvary'

TSB drafted in IBM to help resolve the issues almost a week after the IT meltdown began.  

The bank’s chief executive, Paul Pester, said he was “calling in the calvary to get this thing fixed”.

READ: TSB to waive £10mln in fees to stop customers from jumping ship after IT meltdown

But four weeks on from the IT upgrade, customers were still reporting issues with accessing their accounts and transferring money.

In an effort to stop retail and business clients from jumping ship, TSB waived all overdraft fees and interest charges.

TSB has also raised the interest paid out on its standard current account to 5% on balances up to £1,500, up from 3%, for existing customers. 

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Tue, 15 May 2018 10:35:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/197003/tsb-refused-help-from-former-owner-lloyds-in-it-system-crash-197003.html
<![CDATA[News - TSB to waive £10mln in fees to stop customers from jumping ship after IT meltdown ]]> https://www.proactiveinvestors.co.uk/companies/news/195889/tsb-to-waive-10mln-in-fees-to-stop-customers-from-jumping-ship-after-it-meltdown-195889.html TSB said on Thursday it would cancel overdraft fees and interest charges for its retail and small business customers to compensate for the bank’s IT meltdown.

In a bid to prevent customers from jumping ship, the bank will also increase the interest rate on its main current account from 3% to 5%. The higher rate offer will be extended to new customers.

TSB estimated it will cost £10mln to waive the fees and charges, and another £30mln a year if all of the ‘Classic Plus’ current account customers take up the higher interest rate offer.

The move comes after an upgrade to its online banking system over the weekend led to a data breach that allowed some customers to see other people’s accounts. Others were unable to access their accounts and make payments.

Customers were still reporting problems on Thursday and the bank warned that the issues may not be fully fixed until next week.

TSB calls in 'calvary' IBM to resolve issues

TSB, which is owned by Spain’s Sabadell, has drafted in experts from IBM to help resolve the IT meltdown that has left up to 1.9 million customers locked out of their accounts for almost a week.

The bank’s chief executive, Paul Pester, said he was “calling in the calvary to get this thing fixed”.

The problems began on Friday when TSB began migrating five million customer accounts from the online banking platform of former owner Lloyds Banking Group PLC (LON:LLOY) to a new platform managed by Sabadell.

READ: TSB boss apologises for IT meltdown after Treasury Select Committee demands answers

In Sabadell’s first quarter results on Thursday, the company reported an additional €77mln in expenses related to the IT upgrade.

The new operating system was expected to save TSB about £100mln a year in costs.

Pester apologised again for the chaos but did not say if he would give up a proposed £1.6mln bonus.

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Thu, 26 Apr 2018 15:47:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195889/tsb-to-waive-10mln-in-fees-to-stop-customers-from-jumping-ship-after-it-meltdown-195889.html
<![CDATA[News - TSB boss apologises for IT meltdown after Treasury Select Committee demands answers ]]> https://www.proactiveinvestors.co.uk/companies/news/195666/tsb-boss-apologises-for-it-meltdown-after-treasury-select-committee-demands-answers-195666.html TSB chief executive Paul Pester apologised to customers on Tuesday after an upgrade to its online banking system resulted in a data breach.

The bank took its online banking systems offline around 10.30am and hopes to be back up later this afternoon, Pester said.

“I’ve just resurfaced after 48 hours with my teams who have been working as hard and fast as they can to get our services back up and running,” he said.

“This isn’t the level of service that we pride ourselves on providing, and isn’t what our customers have come to expect from TSB, and for that I’m truly sorry.”

An update from @PaulPester: pic.twitter.com/IhDfX4viYq

— TSB (@TSB) 24 April 2018

The data breach allowed some customers to see other customers' accounts while others reported being unable to access their accounts and make payments.

What caused the disruption 

The problems began on Saturday when the lender upgraded its internet banking platform.

READ: Financial Ombudsman intervenes in TSB internet banking crash

TSB had been renting a banking platform from its former owner Lloyds Banking Group PLC (LON:LLOY) while it developed its own.

The lender, which is now owned by Spain’s Banco Sabadell, moved its customers’ data over to the new platform over the weekend.

Customers were told online banking and payment systems would be unavailable between 4pm Friday and 6pm Sunday but many customers were still unable to access their accounts on Tuesday.

"We’re still seeing issues with access to our digital services,” Pester said. “One of the steps we need to take to resolve this is to take our mobile app and online banking down for a few hours.”

MP demands answers 

Pester’s remarks come after he received a letter from Nicky Morgan, the chair of the Treasury Select Committee, to ask what went wrong, the extent of the failure and how the bank intends to compensate affected customers.

“It simply isn't good enough to expose customers to IT failures, including delays in paying bills and an inability to access their own money,” Morgan said.

"Warm words and platitudes will not suffice. TSB customers deserve to know what has happened, when normal services will resume, and how they can expect to be compensated."

One TSB customer said he was given access to someone else’s £35,000 savings account and £11,000 ISA when he logged online to check how much he had spent at the pub the night before.

Another customer said he could see other people's accounts, totalling more than £20,000.

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Tue, 24 Apr 2018 12:31:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195666/tsb-boss-apologises-for-it-meltdown-after-treasury-select-committee-demands-answers-195666.html
<![CDATA[News - Financial Ombudsman intervenes in TSB internet banking crash ]]> https://www.proactiveinvestors.co.uk/companies/news/195575/financial-ombudsman-intervenes-in-tsb-internet-banking-crash-195575.html The UK’s Financial Ombudsman has intervened in the crash of TSB Banking Group's internet and mobile banking services after receiving complaints from the bank’s customers.

TSB, which has five million customers, said it was working on fixing the failure in its services.

Migration to Sabadell's platform

The problems began after the bank told account holders that some of its services would not be available from 4pm on Friday to 6pm on Sunday due to a system upgrade.

One TSB customer said he was given access to someone else’s £35,000 savings account and £11,000 ISA when he logged online to check how much he had spent at the pub the night before.

Another customer said he could see other people's accounts, totalling more than £20,000.

This should be up and running again soon. In the meantime, please try again and sorry once more for the inconvenience. 2/3 Sophie

— TSB (@TSB) 23 April 2018

TSB used to be part of the Lloyds Banking Group PLC (LON:LLOY) before it was sold to Spain’s Banco Sabadell in 2015.

The bank continued to use Lloyds’ IT systems following its separation but this weekend, was shifted over to use a platform supplied by Sabadell.

TSB on said on Monday afternoon there were still issues with its services, blaming large volumes of customers trying to access their accounts. 

“We are currently experiencing large volumes of customers accessing our mobile app and internet banking, which is leading to some intermittent issues with people accessing our services,” TSB said in a statement.

“We are really sorry for the inconvenience this is causing our customers and want them to know we are working as hard and as fast as we can to resolve this problem.”

The Financial Ombudsman said it was discussing the incident with TSB and its customers. It advised customers on Twitter to tell them more about the problems they've been experiencing.

Hi Silver Fox we're aware of the issues still affecting some customers. We can't get involved in a complaint until you've complained to TSB. You can do this via their website https://t.co/qTBRwErKkK

— Financial Ombudsman (@financialombuds) 23 April 2018

The Financial Conduct Authority said it was aware of the issue and has spoken to the bank.

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Mon, 23 Apr 2018 14:38:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195575/financial-ombudsman-intervenes-in-tsb-internet-banking-crash-195575.html
<![CDATA[News - Styles & Wood inks five-year deal with TSB ]]> https://www.proactiveinvestors.co.uk/companies/news/120481/styles-wood-inks-five-year-deal-with-tsb-120481.html Styles & Wood Group (LON:STY) has inked a five-year deal with TSB Bank (LON:TSB) to continue its property refurbishment programme.

The deal is expected to be worth between £10mln and £15mln per year to the group, which will work on around 200 branches.

The number of contractors on the project has been slashed to two firms from five, with Arcadis acting as lead consultant.

Styles will refurbish existing properties and fit new ones, as well as install new technology and cash machines.

Tony Lenehan, chief executive of Styles & Wood, said: “We are delighted to have secured a place on this revised national framework.

“We have enjoyed an excellent relationship with TSB Bank and look forward to working closely with them to deliver an exceptional offering to their customers.”

While banking remains a significant area of focus and expertise for the group, he added, Styles also provides support services in the retail, office, technology sectors for a number of blue-chip clients.

Shore Capital said: “Post the summer 2015 financial restructuring, significantly reducing debt and freeing up capital for growth, we believe Styles to be well positioned to leverage recovering markets in fit-out and wider project delivery.”

The house broker added that the deal was “good evidence of Styles growing traction in the market”.

Shares in the firm climbed 7.5% or 14p to 200p.

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Tue, 15 Dec 2015 12:15:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/120481/styles-wood-inks-five-year-deal-with-tsb-120481.html
<![CDATA[News - Profits fall at TSB before Spanish takeover ]]> https://www.proactiveinvestors.co.uk/companies/news/109284/profits-fall-at-tsb-before-spanish-takeover-109284.html Increased competition and low interest rates will continue to hit profit at TSB (LON:TSB), the Lloyds spin-off warned today.

Interim profits fell 44% to £23.2mln in the six months to June, down from the £41.7mln.

TSB said high levels of competition and mortgage growth would offset the margin expansion seen in the first half.

There was also an impact from lower average loan balances, a £14.8mln payment to the 2015 financial services compensation scheme levy and costs related to the impending Sabadell takeover.

On the plus side, the TSB mortgage broker service, launched in January, received £1.9bn of mortgage applications in the first half, with £665mln lent out.

Mortgage enhancement, the portfolio worth more than £230mln assigned by Lloyds bank after it spun-off TSB, saw pre-tax profit fall 16% to £44mln.

TSB is expected to delist from the London stock exchange next Tuesday once the £1.7bn takeover by Spanish lender Banco Sabadell goes through. 

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Thu, 23 Jul 2015 11:20:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/109284/profits-fall-at-tsb-before-spanish-takeover-109284.html
<![CDATA[News - TSB keen on 340p takeover approach from Spain's Sabadell ]]> https://www.proactiveinvestors.co.uk/companies/news/67022/tsb-keen-on-340p-takeover-approach-from-spains-sabadell-78188.html TSB (LON:TSB), the bank spun out of Lloyds Banking (LON:LLOY) last year, is set to be taken over by Spanish bank Sabadell after receiving a 340p per share approach.

In a statement today, TSB confirmed the offer and that its board would be willing to recommend the 340p price, which values it at £1.7bn. 

TSB's retail growth strategy and expansion in the small business sector would be enhanced by being part of Sabadell, it said.

Lloyds Banking still owns 50% of TSB, but has to sell its stake by the end of the year.

Sabadell has already acquired Lloyds’ retail banking operations in Spain and is now one of the largest banks in the country.

As well as Spain, Sabadell has also developed a presence in the US and said the UK was another attractive market, adding TSB would be able to enhance its growth strategy under its ownership.

TSB comprises 631 former Lloyds branches that the taxpayer-controlled bank was ordered to sell by the European Commission after its merger with HBOS during the financial crunch was deemed as state intervention.

Its shares jumped 26% to 333p, while Lloyds Banking rose 2% to 79.5p.

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Thu, 12 Mar 2015 09:18:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/67022/tsb-keen-on-340p-takeover-approach-from-spains-sabadell-78188.html
<![CDATA[News - TSB growing its customer base ]]> https://www.proactiveinvestors.co.uk/companies/news/63008/tsb-growing-its-customer-base-73617.html TSB (LON:TSB) said it is attracting customers at a faster rate than it had hoped.

One-in-ten people switching accounts went with the newly independent bank. The group’s long-term aim is to have 6% market share.

The news was part of wider update from TSB, which listed in June following its split from Lloyds Banking Group.

It said statutory profits were up 29% for the three months to September 30 at £33.1mln, while deposits grew by £500mln to £24.2bn.

The group has a significant cash cushion against financial problems, measured by the tier one capital ratio, which stands at 18.8%. 

"While we have always been clear that we are on a five year journey to grow TSB and its returns, it's great to see people right across Britain continuing to vote with their feet for TSB's local banking model,” said chief executive Paul Pester.  

 


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Fri, 24 Oct 2014 08:15:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/63008/tsb-growing-its-customer-base-73617.html
<![CDATA[News - Virgin Money gets first night nerves ]]> https://www.proactiveinvestors.co.uk/companies/news/62727/virgin-money-gets-first-night-nerves-73374.html Richard Branson’s Virgin Money has postponed its planned £2bn stock market float due to the slide in stock markets over the past two weeks.

It is the second so-called challenger bank to cancel a listing this week after Aldermore, which had aimed to raised £300mln, dropped its plans blaming the market turmoil.

Virgin Money also cited the volatility of stock markets currently for its decision. Jayne-Anne Gadhia, chief executive, said the bank still intended to press ahead with a listing “as soon as market conditions allow". Reports today suggested the bank is now looking at November for its market debut.

There have been close to 100 news listings in London this year and the market may be suffering from flotation fatigue.

Aldermore had hoped to raise £300mln in new money as part of an £800mln listing, while Virgin Money was expected to be valued at £2bn and raise around £150mln on its market debut.

Virgin grew so large by taking on the rump of the nationalised Northern Rock. It has 75 branches, 2.8mln customers and employs 2,800 people.

The attack of first night nerves by Virgin and the decision by Aldemore to put its flotation plans on hold means only one challenger bank has thus far gone through with its plans to float this year: TSB Banking Group (LON:TSB).

Floated in late June, TSB's shares have lost just over one-third of their value, though performance of the shares is always likely to be constrained until Lloyds Banking, which still owns around half of TSB, finishes selling down its stake.

Earlier today, upmarket shoe retailer Jimmy Choo (LON:CHOO) had to price its share listing at 140p, the bottom of its hoped for range. The indicated pricing range was originally 140p to 180p, according to news agency reports.

The 140p flotation price values the whole of Jimmy Choo at £546mln.

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Fri, 17 Oct 2014 13:10:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/62727/virgin-money-gets-first-night-nerves-73374.html