TSB Banking Group said first-half profits slumped 44 per cent after it was hit by a fall in loans and a £15m Financial Services Compensation Scheme charge.
On the bright side, TSB, which has agreed to a £1.6bn takeover by Spain’s Banco Sabadell, said it took a 6.7 per cent share of all new and switching bank accounts in the last quarter, above its target of six per cent.
The high street bank, which listed on the London Stock Exchange in 2014, reported management pre-tax profit of £44m for the six months to June 30, down from £79m last year.
TSB was spun out of Lloyds Banking Group last year after Lloyds was ordered to sell the business by European regulators as a condition of its £20.5bn bailout during the 2007-9 financial crisis.
Sabadell, Spain’s fifth-biggest bank, is buying TSB with the aim of growing the bank to challenge Britain’s “Big 5” lenders.
Sabadell said this month it would move to compulsorily buy out remaining TSB minority shareholders.
The Government wants to break the dominance of Lloyds, Royal Bank of Scotland, Barclays, HSBC and the UK arm of Spain’s Santander), which together control more than four out of five personal current accounts in the UK.