Despite the lack of intermediary support the bank’s gross lending grew by 11.8% in the three months to September reaching £397.8m compared to £355.8m in June Q2.
Based on the Council of Mortgage Lenders’ 2013 full year gross lending figures TSB ranked 14th in its top 20 lenders after lending £1.4bn last year.
A broker launch of its products will begin in December through London & Country. TSB confirmed in its financial update that it remained on track to launch fully in January next year.
TSB generated a Q3 2014 management profit before tax of £41.6m (Franchise: £20.7m; Mortgage Enhancement: £20.9m) and a statutory profit of £33.1m.
TSB Franchise refers to the retail banking business. Mortgage Enhancement is the mortgage loan portfolio that was assigned to the group by Lloyds Banking Group from 28 February 2014 in response to a review by the Office of Fair Trading of the effect on competition of the divestment of TSB. The Mortgage Enhancement portfolio is a closed book which is being run down.
Paul Pester, chief executive of TSB, said: “While we have always been clear that we are on a five year journey to grow TSB and its returns, it’s great to see people right across Britain continuing to vote with their feet for TSB’s local banking model.
“The strong current account performance is one of the factors that has enabled us to grow our customer deposits by £0.5bn to £24.2bn. Meanwhile our plans to enable customers across Britain to buy a TSB mortgage from their local mortgage broker from Q1 2015 remain on track.
“I thank all TSB customers and partners for continuing to reinforce TSB as Britain’s challenger bank.”
