November 25, 2019 / 10:50 AM / 13 days ago

Britain's TSB to close 82 branches, slash costs in strategy overhaul

LONDON/MADRID, Nov 25 (Reuters) - British bank TSB will close 82 branches next year, or about 15% of its total, as part of a turnaround plan aimed at making 100 million pounds ($128 million) of savings by 2022.

The bank, which traces its roots back around 200 years, was bought by Banco Sabadell for 1.7 billion pounds in 2015 as the Spanish bank looked to expand into Britain in search of higher revenues.

But the move backfired when IT glitches sent TSB’s costs spiralling. Last year, TSB made a loss.

Announcing its mid-term strategy for 2019-22, TSB said it expected the savings to help improve its cost-to-income ratio by 15 percentage points by the end of the plan.

Restructuring charges will amount to 180 million pounds.

It did not give details on potential job losses.

TSB said it was aiming for a profit after tax of 130-140 million pounds by 2022, from a current breakeven position.

The bank, which will invest 120 million pounds to transform its online channels, expects three quarters of its clients to be digitally active over the next three years.

$1 = 0.7794 pounds Reporting By Lawrence White in London and Jesús Aguado in Madrid; Editing by Jose Elias Rodriguez and Mark Potter

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