UK bank TSB debut profits fall as costs jump
LONDON, July 31
LONDON, July 31 (Reuters) - New British bank TSB said its underlying profit in the first six months of the year fell 17 percent from a year ago after it incurred far higher costs after spinning out and listing on its own last month.
TSB, Britain's 7th biggest lender after being spun out from Lloyds Banking Group and listed last month, said underlying pretax profit in the six months to the end of June was 78.6 million pounds ($133 million), down from 94.6 million a year earlier. It said costs were 62 million pounds higher than a year ago as it no longer benefited from the economies of scale that Lloyds has.
Lloyds sold a 35 percent stake in TSB and its shares have gained 8 percent since listing, valuing the bank - which has pledged to stick to simple UK retail banking to win business from its big rivals - at 1.3 billion pounds.
TSB has 631 branches and was carved out from Lloyds under orders from European regulators as a cost of the taxpayer bailout for the lender in the 2008/09 financial crisis.
TSB said it won 9.2 percent of new and switching current account holders in the three months to the end of April, which should help it lift its market share above its 4.2 percent. ($1 = 0.5911 British Pounds) (Reporting by Steve Slater; Editing by Matt Scuffham)
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