TSB’s April IT crash leads to £107m loss
In its results for the six months to 30 June 2018, the bank says its mobile, online, telephone and branch services have recovered and improved, following the drama, which resulted in a big public backlash.
Paul Pester, TSB CEO, released a statement with the expected apology and stressing the intention of fixing things, just like the bank said soon after the crash happened.
As a result of all these issues, TSB is making efforts to minimise service disruption, which includes the recruitment of 1,800 people and reorganisation of 700 staff to customer-facing roles, as well as addressing customer complaints.
TSB has recognised additional post-migration costs, including customer compensation, of £176.4 million. For comparison, the firm reported a profit of £108.3 million in H1 2017.
The bank reports total customer lending of £31 billion, with customer deposits at £29.6 billion and its common equity tier 1 capital ratio remained strong at 19.2%.
The customer balance is roughly 26,000 customers lost, but 20,000 new customers gained.
The delivery of the migration programme resulted in income from Lloyds of £318 million, which was offset by a charge of £318 million for migration related costs.
If you like drama, IBM had some words to say about why the crash happened.