More bank branches to close with 36 closing and 250 jobs cut

Banking group TSB said it is closing 36 branches and cutting 250 jobs across the business. In February this year, TSB announced £29m for a program of initiatives it said would help manage business spend.

The head of TSB’s Spanish owner Sabadell, Cesar Gonzalez-Bueno, told reporters the plans would “include both” a reduction in the bank’s staff and branches. TSB said it would speak to staff before announcing more details about potential job losses or closures at its hundreds of UK branches.

A spokesman for the bank said: “We have been clear about our focus on cost reduction, but as with any announcement about changing the way we operate, we always consult with our colleagues first.”

The move was revealed in TSB’s annual financial results, which showed the business making a pre-tax profit of £237m in 2023, up almost 30% on the previous year. The jump was driven by a rise in its income of more than £50m as it benefited from higher interest rates which pushed up the cost of borrowing.

It has proposed paying a £120m dividend to parent Sabadell in the first quarter of this year following improved performance. However, the bank has a higher cost-to-income ratio than other lenders such as rivals Santander UK and Virgin Money – meaning the amount it spends running the business as a percentage of the amount it generates in income.

Work is underway to reduce this percentage by focusing on simplifying the bank and making it more efficient. This year, investment banking giant Deutsche Bank unveiled plans to cut 3,500 jobs by the end of the year as part of efforts to save around £2.1bn and improve its profits.

And Lloyds Banking Group said it is cutting around 1,600 jobs across its branch network as it moves away from in-person banking and towards online and mobile banking.

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