Strategic delivery
- 8.4% share of all new and switching bank accounts over the last 12 months(5) - almost 500,000 new bank accounts opened with TSB in 2014.
- Launch of TSB's mortgage broker service as planned - with over £300 million of applications received to date.
- More customers than ever, as measured by our net promoter score, would recommend TSB(6).
- The only high street bank rated in the top quartile for customer service across major UK brands by Which? Magazine(7).
2015 outlook
We expect:
- To consistently attract a greater than 6% share of gross flow of all switching and new personal bank accounts through 2015.
- The balance of Franchise net lending to increase by around £1.5 billion in 2015, with net growth from mid-way through the year.
- To meet these growth targets while controlling costs to no more than £720 million in 2015.
- The Franchise net interest margin to be broadly flat in 2015, with a positive start offset by subsequent compression.
- Franchise other income to fall by c. £15 million primarily driven by lower interchange income.
"2014 was a pivotal year for our business as we started to establish TSB as Britain's challenger bank.
In terms of financial performance, I'm pleased that, on balance, we've exceeded the expectations we set out at the time of our IPO in June last year. In addition, I'm delighted that we've made such a strong start in delivering TSB's growth strategy.
With 8.4% of all people switching or opening a bank account in 2014 choosing TSB; with the recent successful launch of our TSB mortgage broker service and with more people than ever before now recommending TSB to friends and family, it's great to have reached "base camp" on our mission to "bring more competition to UK banking"."
