Since the launch of its mortgage range in August 2012, the bank has steadily geared up the competitiveness of its mortgage lending. Interim results to October 2013 confirmed the bank increased mortgage lending by 77% in six months to hit £456.8m.
In terms of Mortgage Market Review, Tesco Bank confirmed plans to offer an advised service over the phone from Monday 28 April.
This morning, Tesco Bank revealed profit before tax progressed strongly,
up by 23.1% to £152.6m, from £124m last financial year.
This growth was driven by its core banking products with customer accounts for credit cards, loans, mortgages and savings up 14%. The bank has plans to launch current accounts in the first half.
The bank confirmed its customers received around £120m of Clubcard points.
Tesco chief executive, Philip Clarke, said: “Despite challenging market conditions for our insurance business, we have seen a good customer response to new initiatives. In particular, we have seen strong growth in home insurance following its re-launch. New polices also grew strongly in the second half of the year driven by our products being available to more customers through price comparison websites and by new products such as Tesco Bank Box Insurance.”
The Bank drew down funds from Funding For Lending this financial year and has made a further increase to the provision for PPI of £20m and a provision of £43m for customer redress.
Tesco has 530,000 employees and 6,784 shops worldwide, with 3,146 in the UK.
However, the group reported a £3.3bn trading profit which is a year-on-year decline which reflects ‘challenges’ in UK and Europe, however, UK grocery showed growth of +11%.