A TSB spokesperson tells Finextra: “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.”

This week, TSB reported a statutory profit before tax of £237.2 million for 2023, an increase of £53.7 million (29.3%) from 2022 – increasing its proposed dividend to Sabadell to £120 million.

Robin Bulloch, TSB’s CEO, adds: ”We are reporting another year of sustained profitability, demonstrating the impact of both our continued focus on customers, delivering products and services that genuinely meet their needs, and the work to make TSB a simpler, more efficient, and resilient bank. Throughout the cost-of-living challenges, our Money Confidence purpose has resonated strongly with our customers – and I’d like to thank everyone at TSB for their continued hard work to step up to support them.”

These numbers reflected a programme of cost saving initiatives that will reduce costs from 2024 onwards. TSB also confirmed that their strategy has always included simplification and efficiency is a key part of our strategy, and have improved their cost-to-income ratio from 104.4% in 2020 to 73.6% in 2023. 

It is also important to point out that TSB’s cost:income ratio remains relatively high compared competitors such as Santander UK, which reported a ratio of 53% on an adjusted basis this week and Virgin, which reported a ratio of 51.9% in November 2023.