Mr Pester said in a statement: “Five years ago, on September 9 2013, we launched TSB back onto high streets across Britain. I vividly remember standing in our Baker Street branch, waiting to reveal TSB above the door. But it wasn’t just a sign we were revealing - we were revealing a bank with a clear mission to bring more competition to UK banking and ultimately make banking better for all UK consumers.
“Thanks to the fantastic work and commitment of all TSB partners, we have achieved real success in creating a bank which is truly consumer-focused, attracting customers from the UK’s established banks, and growing TSB’s balance sheet from c.£18 billion to c. £31billion today.
“The last few months have been challenging for everyone at TSB. However, I want to thank all my colleagues across TSB for their dedication and commitment during this period and for their focus on putting things right for TSB customers.
“It has been a privilege to lead TSB through its creation and first five years. I look forward to seeing the next stage of our bank’s history evolve.”
Mr Meddings said: “Paul has made an enormous contribution to TSB. Thanks to his passion and commitment, TSB is today one of the UK’s strongest challenger banks, serving over five million customers across the UK. On behalf of the TSB board, I want to thank Paul for everything he has achieved as CEO and pay tribute to the contribution he has made in bringing greater competition to the UK retail banking market.
“Although there is more to do to achieve full stability for customers, the bank’s IT systems and services are much improved since the IT migration. Paul and the board have therefore agreed that this is the right time to appoint a new CEO for TSB. Our goal is therefore to allow a full search to commence, without any distractions, enabling TSB to build for the future.
“Meanwhile I have been asked by the board to take on the role of executive chairman on an interim basis. Together with the executive committee, we have three immediate priorities: to complete the work of putting things right for customers; to enable the bank to achieve full functionality - including the availability of all product services and launch of a leading business banking offer; and appointing a CEO for the next chapter of TSB.”