You are here: Home - News -

TSB lends £1.2bn in Q1 as IBM called in for IT rescue

  • 26/04/2018
  • 0
TSB lends £1.2bn in Q1 as IBM called in for IT rescue
Besieged lender TSB has drafted in IBM to help fix its IT meltdown, which has left customers struggling to access basic banking services for almost a week.



The IT giant is to support TSB in resolving issues, the bank said, as it reported Q1 2018 results with a grovelling apology for the systems mess from chief executive Paul Pester.

Profit before tax fell 39.3% to £19.3m in the first three months of the year compared to the same period last year, which TSB largely blamed on temporary movements in hedging arrangements.

The lender said it advanced £1.2bn of new mortgage loans in the first quarter of 2018, building on the £7bn gross lending advanced in 2017.

The results were mostly overshadowed by the bank’s IT problems.

Last weekend TSB moved 5 million of its customers to a new banking platform, but in the following days customers were locked out of accounts, and in some cases reported access to different customers’ details.

Pester said most customers should find everything is now running smoothly but teams continue to work “around the clock” to fix the systems that are not running as well as they should be.


Customers not left out of pocket

The bank promised that customers will not be left out of pocket following the issues and is waiving all overdraft and interest charges for retail and small business customers in April.

TSB said it will also raise its interest rate on its classic plus account to 5%, as a way of saying “thank you to our customers for sticking with us”.

Pester said: “As we moved over to our new banking platform last weekend, the landing was an incredibly bumpy one for our customers, and for that I am truly sorry.

“This is not the level of service that we pride ourselves on providing – nor is it what our customers have come to expect from TSB.

He added: “We have achieved a tremendous amount in the past four years in building TSB.

“We clearly have some issues we’re dealing with but we will come out the other side.

“The way we deal with every single one of our frustrated customers as quickly as possible will define TSB – both now and in 10, in 15 and in 20 years to come as we continue on our mission to bring more competition to UK banking.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Antony Lark
Openwork broker recruitment hits eight-year high

Openwork added 160 mortgage advisers in the first quarter of 2018 – the network’s biggest quarterly intake of brokers for...