New bank TSB picks up customers as third-quarter profits rise

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New British bank TSB said it was picking up nearly one in 10 of all new current accounts being opened in the UK and its third quarter profits jumped more than a quarter from the previous period.

TSB, Britain’s seventh biggest lender after being spun out from Lloyds Banking Group in June, said its pre-tax profit rose to £33.1m, up 29 per cent from the second quarter.

The bank’s 9.7 per cent share of new current account openings during the quarter put it ahead of a long term target to grow its market share to six per cent.

It had a 4.2 per cent share when it listed in London in June.

Lloyds was ordered to sell TSB by European regulators as a condition of Lloyds’ taxpayer-funded bailout during the financial crisis of 2007 to 2009. Splitting out TSB was intended to create a viable challenger to Britain’s biggest banks.

TSB wants to increase its balance sheet by 40 to 50 per cent over the next five years and is targeting a return on equity of 10 per cent or more.