‘Relentless focus on better serving customers and improving competitiveness’ says TSB
TSB has confirmed that it will close 17 branches in Scotland next year, following a review of its UK network. Three of the branch closures are in Edinburgh.
Key outcomes and financial targets in TSB’s 2022 strategic plan:
- £120m investment to transform digital channels over next three years
- c.5% net lending growth per annum
- Profit target of £130 million – £140 million by 2022
- Significantly improved efficiencies with 15 percentage point improvement in cost to income ratio and £100 million in net cost savings by 2022
- Reduction in the branch network in response to changing customer behaviour with 82 branch closures in 2020
TSB’s CEO Debbie Crosbie has outlined the Bank’s three-year strategy to restore the Bank’s competitiveness ‘through a relentless focus on better serving its customers’.
TSB will invest £120 million in digital solutions, products and services that will help deliver its renewed business purpose – Money Confidence. For everyone. Every day.
The new purpose led strategy sets out a ‘transformation programme’ for the Bank to become a simpler organisation to compete effectively, with deeper customer relationships and a better balance of customer channels.
Debbie Crosbie said: “Our new strategy positions TSB to succeed in a challenging external environment at a time when we know customers want something different and better from their bank.
“With a trusted brand, modern platform, and national presence, TSB is well placed to deliver – but we need to make changes to enable us to compete.
“The plan we’re sharing today involves some difficult decisions, but it sets TSB up to succeed in the future. Taken together, these changes will help us to serve more customers, better, for the long-term.”
Sabadell CEO, Jaime Guardiola said: “TSB brings enhanced scale and broader geographical diversification to the Group, and is a key lever to improve our profitability going forward.”
“The Strategic Plan we present today sets the stage for TSB’s future growth. TSB has a strong starting position and a well-defined plan to deliver all the commitments.
“I am very confident that TSB has the right team to deliver this plan and they have all the support from the Group.”
TSB customer banking director Robin Bulloch said: “We have made the difficult decision to close some of our quieter branches and will fully support customers through this transition.
“We realise this is difficult news for our branch partners and will do everything to support those affected to redeploy as many people as we can to other roles and keep compulsory redundancies to a minimum.”
Corporate gobbledygook aside, the three Edinburgh branches being axed next year are Portobello (May), Clerk Street (July) and Morningside (September).
Miles Briggs, Scottish Conservative Lothian MSP, said: “It is very disappointing for staff and customers in Newington, Morningside and Portobello that these branches are closing next year.
“Access to cash and banking facilities is the preferred way of banking for many people and the closures will limit access for lots of people in Edinburgh.”
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