(Corrects in first and second paragraphs to show comparison was
with previous six months)
LONDON, July 31 New British bank TSB
said its underlying profit in the first six months of the year
fell 17 percent from the second half of 2013 after it incurred
far higher costs after spinning out and listing on its own last
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
in July-December 2013. It said costs were 62 million pounds
higher than the previous half-year 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)