TSB has reported a £66m pre-tax loss in the first half of its financial year, compared with £87.5m in 2019.
TSB reported a statutory loss before tax of £65.5m, compared to a pre-tax profit of £21.1m in H1 2019.
The bank said credit impairment charges increased by £87.5m compared to the same period in 2019, reflecting a “significant weakening in the economic outlook, including higher forecast unemployment and house price declines”.
However, the number of customer deposits increased by 10% to £32.9bn compared with £30.1bn in the same period last year.
TSB added that it had reduced its operating expenses to £418.2m.
Debbie Crosbie, TSB’s CEO, said: “We had a strong start to the year, but the external environment changed significantly when Covid-19 struck. We’ve benefited hugely from the technology platform we now have in place at TSB, enabling us to accelerate our digital offer for customers when they needed us most.”
“Despite the challenging context, our balance sheet and capital position remain strong, we have improved efficiency in our operations, and our purpose to help people increase their money confidence has never been more relevant.”
Crosbie added: “I’m particularly proud of how TSB colleagues have responded, learning new skills, taking on new responsibilities, demonstrating real resilience, and above all putting customers first – showing TSB at its best.”