TSB plans job cuts and branch closures as it sets aside £29m for cost savings
The boss of TSB’s Spanish owner Sabadell told reporters that the plans will “include both” a reduction in bank staff and branches.
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Your support makes all the difference.High street bank TSB could see jobs cut and branches closed this year as part of plans to reduce costs across the group.
The bank has set aside about £29 million for a programme of initiatives which it said will help manage business expenses.
The boss of TSB’s Spanish owner Sabadell, Cesar Gonzalez-Bueno, told reporters the plans will “include both” a reduction in bank staff and branches.
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
TSB said it will speak to staff before announcing any more details about potential job losses or closures across its hundreds of UK branches.
A spokesman from the bank said: “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.”
The move was revealed in TSB’s full-year financial results, which showed the business made a pre-tax profit of £237 million over 2023, nearly 30% more than the previous year.
The jump was driven by an increase in its income of more than £50 million, as it benefited from higher interest rates which have pushed up the cost of borrowing.
It proposed paying a dividend of £120 million to parent company Sabadell in the first quarter of this year as a result of the improved performance.
Nevertheless, the bank has a higher cost-to-income ratio than other lenders, such as rivals Santander UK and Virgin Money – meaning the amount it spends on running the business as a percentage of the amount it generates in income.
It is working to reduce that percentage by focusing on simplifying the bank and making it more efficient.
On Thursday, investment banking giant Deutsche Bank revealed plans to cut 3,500 jobs by the end of the year, as part of efforts to save about £2.1 billion and improve its profits.
Last week, Lloyds Banking Group said it was axing about 1,600 jobs across its branch network as it shifts away from in-person banking and towards online and mobile banking.