High street lender TSB has revealed a jump in profits for the past year, despite facing a “challenging mortgage market”.
The Spanish-owned bank recorded a pre-tax profit of £290.4 million for 2024, up 22.4% on the previous year.
It said the rise was driven by reductions in the firm’s operating expenses and impairment costs for the year.
Lower restructuring costs helped to offset the impact of higher inflation and the new Bank of England levy, the company added.
We are confident that we can achieve our future growth ambitions through better supporting customers with their financial goals while continuing to make the business fit for the future
Meanwhile, it saw credit impairment charges of £30.1 million, less than half what it reported a year earlier as it benefitted from a reduced risk environment.
It came despite TSB revealing that income fell by 1.4% to £1.14 billion after a reduction in mortgage margins.
Customer lending was up 0.2% year-on-year, as it highlighted “challenging mortgage market” conditions.
Robin Bulloch, TSB’s chief executive, said: “I am delighted that TSB has delivered another year of record results.
“We are confident that we can achieve our future growth ambitions through better supporting customers with their financial goals while continuing to make the business fit for the future.
“I want to thank all my colleagues for their contributions over the past year and for the dedication they continue to show in serving our customers now and into the future.”
It comes after the bank announced last November that Mr Bulloch will step down from the top job early this year, to be replaced by former director Marc Armengol.
TSB also said on Friday it will pay a £300 million dividend to Spanish parent firm Banco Sabadell.
