TSB's technology meltdown after a bungled systems transfer in April cost the bank £176.4m, forcing it into the red.
The figures
TSBs financial performance was "significantly impacted" by the meltdown, swinging to a statutory loss of £107.4m for the first half of the year compared with a profit of £108.3m in 2017.
Income from Lloyds Banking Group as a result of the migration programme was wiped out by migration-related costs, with further costs of £176.4m, including £115.8m for "customer redress, associated remediation resource costs and fraud costs".
Nearly two million customers lost access to their online banking account – with 26,000 customers ditching TSB in the second quarter, resulting in a net loss of 6,000 customers.
However TSBs liquidity is robust with a fully loaded common equity tier one ratio of 19.2 per cent.
Why it's interesting
The meltdown has overshadowed the bank's first six months and it's unlikely to end there.
The Treasury Select Committee and the Financial Conduct Authority are still looking into the matter, after it led to more than 10,000 cases of fraud, leaving customers tens of thousands of pounds out of pocket.
What TSB said
Chief executive Paul Pester acknowledged the bank's failings over the meltdown.
“Were 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 said. "I know how frustrated many customers have been by whats happened. It was not acceptable, and was not the level of service that we pride ourselves on – nor was it what our customers have come to expect from TSB.
“It has been a difficult time for customers and I am grateful to them for their patience. I would also like to say thank you to our Partners for their enormous efforts. They have done everything in their power to continue serving our customers, and I am proud to see that the values on which the Bank has been built have shone through during this time.
“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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