TSB Bank (United Kingdom)

TSB Bank plc

Type	Public limited company
Industry	Banking Financial services
Predecessor	Lloyds TSB, Cheltenham & Gloucester
Founded	9 September 2013
Headquarters	Henry Duncan House 120 George Street Edinburgh, Scotland
Number of locations	631 branches 5 operations centres 2 telephone centres
Key people	Will Samuel (Chairman) Paul Pester (Chief Executive)
Products	Retail banking Commercial banking General insurance Life insurance
Revenue	£900.2 million (2014)[1]
Operating income	£267.8 million (2014)[1]
Net income	£134.5 million (2014)[1]
Number of employees	8,500
Parent	Sabadell Group
Website	www.tsb.co.uk

TSB Bank plc is a retail and commercial bank in the United Kingdom, which is a subsidiary of the Sabadell Group.^[2] TSB Bank operates a nationwide network of 631 branches across England, Scotland and Wales. TSB launched on 9 September 2013, with more than 4.6 million customers and over £20 billion of loans and customer deposits, and is headquartered in Edinburgh. The bank was formed from a number of Lloyds TSB branches in England and Wales, all branches of Cheltenham & Gloucester and the business of Lloyds TSB Scotland. These were transferred to the existing Lloyds TSB Scotland plc,^[3] which was renamed TSB Bank plc.

The divestment of TSB from Lloyds Banking Group was necessary due to a European Commission ruling that the British government's purchase of a 43.4% stake in the group in 2009 counted as state aid. The ruling required that the group sell a portion of its business. The reestablished TSB was listed on the London Stock Exchange following an initial public offering in June 2014,^[4] and was a constituent of the FTSE 250 Index. TSB accepted a takeover offer from the Spanish bank Sabadell in March 2015, which was completed on 8 July 2015.^[2]

History

Trustee Savings Bank

The TSB name was previously used by the Trustee Savings Bank prior to its merger with Lloyds Bank in 1995,^[5] resulting in the formation of Lloyds TSB in 1999.

The merger was structured as a reverse takeover by TSB; Lloyds Bank was delisted from the London Stock Exchange and TSB Group was renamed Lloyds TSB Group in 1995, with former Lloyds Bank shareholders owning a 70% equity interest in the share capital, effected through a scheme of arrangement. The new bank commenced trading in 1999, after the statutory process of integration was completed.^[6] The original TSB Bank transferred engagements to Lloyds Bank which then changed its name to Lloyds TSB Bank; at the same time, TSB Bank Scotland absorbed Lloyds' three Scottish branches becoming Lloyds TSB Scotland.

In 1986, the legal entity, Trustee Savings Bank, was renamed TSB Scotland (and, in 1989, TSB Bank Scotland), before becoming Lloyds TSB Scotland in 1999.^[7] This company was re-registered under the name TSB Bank in 2013.^[8] The parent, TSB Banking Group, was registered in England in 2014 and later that year TSB Bank ceased to be part of the Lloyds Banking Group.^[9]

Project Verde

TSB Newcastle city centre, a former Lloyds TSB branch

Lloyds TSB Group bought HBOS in January 2009 and renamed itself Lloyds Banking Group.^[10] In 2009, following the UK bank rescue package, HM Government took a 43.4% stake in Lloyds Banking Group (since reduced to below 10%^[11]), which later announced that it would sell a standalone retail banking business of 632 branches and most accounts held at those branches in order to comply with European Commission state aid requirements.^[12]

Codenamed "Verde", the group's divestment plan identified 632 branches which were transferred to a new business. Customers with accounts held by the branches and staff employed within them were also transferred. A number of Lloyds TSB branches in England and Wales, together with all branches of Lloyds TSB Scotland and Cheltenham & Gloucester, were brought together to form the new business, which operates under the TSB brand.^[3] The remainder of the Lloyds TSB business was rebranded back to the Lloyds Bank name.^[13]

Agreement with Co-operative Banking Group

Lloyds Banking Group reached a heads-of-terms agreement in July 2012 to sell the Verde branches to The Co-operative Bank for £750 million.^[14][15] The final transfer of TSB Bank to the new owner was planned to be completed by late 2013. In February 2013, it was reported that Lloyds Banking Group was considering a stock market flotation of the TSB business as an alternative, should the transfer not be completed, and they would make a final decision by the end of July. The Co-operative Banking Group blamed current economic conditions for delays in completing the deal and had sold its life insurance assets for £200-million in an effort to secure £1-billion needed to complete the deal.^[16][17]

In April 2013, The Co-operative Group announced that it would not proceed with the transaction, citing the economic environment and increasing regulatory requirements in the financial sector.^[18]

Initial public offering

TSB Bank plc began operating as a separate business within Lloyds Banking Group on 9 September 2013,^[19] with the intention of selling it off through an initial public offering.^[20] Lloyds Banking Group announced that 25% of TSB's shares would be floated on 24 June 2014,^[21] but, with the offer being ten-times oversubscribed, 38.5% of shares in TSB Banking Group plc, were sold at 260p on 20 June.^[22] Unconditional trading in the shares started on 25 June 2014. A further 11.5% of TSB Banking Group shares were sold by Lloyds Banking Group in September 2014, bringing its share holding down to 50%.^[23]

According to Lloyds' chief executive, António Horta-Osório, the separation cost £1bn more to perform than the new bank is worth.^[24]

Acquisition by Sabadell Group

On 12 March 2015, TSB confirmed a takeover bid by the Spanish banking group Sabadell for £1.7 billion, less than a year after it rejoined the stock market through Lloyds Banking Group's sale of 50% of its holding.^[25] TSB agreed to the takeover on 20 March 2015 ^[26] which was completed on 8 July 2015.^[2]

In October 2015, Sabadell Group outlined its plans for TSB to continue as a competitor in the UK banking sector, by further expanding into the small business banking market, and introducing cardless emergency cash and mobile payment systems.^[27] TSB's online banking services, which currently use the Lloyd's Banking Group platform, will be migrated to a UK-based replica of Sabadell's Proteo platform by the end of 2017. Sabadell also confirmed that the TSB name would be retained, as the group felt it was a "very powerful" brand with "traction" in the UK, unlike the parent brand, which is "virtually unknown" by the British public.^[28]

In November 2015, TSB agreed to acquire £3.3 billion in mortgages assets from the nationalised NRAM plc, the "bad bank" formed from the former Northern Rock.^[29] The acquisition was completed in July 2016 resulting in TSB establishing a trading division named Whistletree to administer these mortgages.^[30] The division's name refers to the blue tree branding used by TSB Bank and the whistling that features in its television advertising.^[31]

Corporate affairs

Identity

TSB's logo is similar to the logo of the former Trustee Savings Bank and consists of three interlocking circles in varying shades of blue bearing the name of the bank. Since its launch in 2013, TSB has used the slogan "Local banking for Britain" rather than "The bank that likes to say yes" slogan used by the former Trustee Savings Bank. TSB's launch advertising campaign featured a short film about the banks founder Henry Duncan and was voiced by Patrick Stewart.^[32]

Leadership team

As of October 2015, the leadership team of TSB is composed of:^[33]

• Chairman - Will Samuel
• Chief Executive Officer - Paul Pester
• Chief Finance Officer - Darren Pope
• Chief Risk Officer - Neeta Aktar
• Chief Operating Officer - Helen Rose
• Chief Marketing Officer - Nigel Gilbert
• General Counsel and Company Secretary - Susan Crichton
• Treasurer - Ian Firth

Locations

On its formation in September 2013, TSB Bank plc had:

• 631 branches, of which:^[34]
  • 282 were former Lloyds TSB branches in England and Wales
  • 164 were former Cheltenham & Gloucester branches
  • 185 were former Lloyds TSB Scotland branches ^[35]
• Administration centres in Edinburgh, Bristol, Gloucester, Birmingham and London ^[36]
• Telephony centres in Sunderland and Swansea

Services

A branch of TSB, formerly Cheltenham & Gloucester, on the High Street in Shrewsbury

The bank offers a full range of personal and business banking and financial services, including current accounts, mortgages, credit products, insurance, and savings products. TSB Bank is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority.^[37] It is a member of the Financial Ombudsman Service and the Financial Services Compensation Scheme, and subscribes to the Lending Code.^[38]

TSB also operate a distinct trading division named Whistletree, which services mortgages bought from NRAM plc. The division is served by a standalone website and separate contact centre, with TSB branch staff having no access to these accounts.^[39]

The bank uses the following series of sorting codes:—

Notes

References

External links

Wikimedia Commons has media related to TSB Bank.

• TSB Bank
• TSB Careers
• Whistletree Mortgages
• Banco de Sabadell - UK Branch