The bank attributed the losses to measures in response to Covid-19, reduced overdraft income, interest rates and consumer spending in 2020
UK-based TSB Bank has reported a statutory loss before tax of £204.6m for the year ended 31 December 2020, compared to a pre-tax profit of £46m in the previous year.
Its total income decreased by £90m or 9.1% to £894.8m for 2020, from £984.9m for the full year 2019.
TSB Bank attributed the decrease in net income to the adoption of government and regulatory measures in response to Covid-19, reduced overdraft income due to regulatory pricing changes, reduced interest rates and consumer spending.
The UK-based firm reported a total customer lending of £33.3bn for the year 2020, a 7.2% increase compared to £31.07bn for the year 2019.
TSB reported total customer deposits of £34.4bn for the full-year 2020, a 13.9% increase compared to £30.18bn for the full-year 2019.
TSB chief executive Debbie Crosbie said: “TSB’s underlying performance is much improved. We’re ahead of plan in delivery of our strategy and have relaunched our brand, all of which sets us up well for the future.
“However, the impact of the pandemic and the additional cost of restructuring overshadows our financial result for the year.
“We achieved record levels of lending growth in 2020, including mortgage applications exceeding £10bn in a year for the first time, and we continue to grow deposits.
“We have also made TSB more efficient, with underlying running costs lower than in 2019. Our balance sheet and capital position remain strong.”
The bank has reported reduced operating expenses of £827.7m for the full-year 2020, a 2.3% decrease compared to £847.6m for the year 2019.
TSB has incurred impairment losses amounting £164m for 2020, compared to £60.5m for 2019.
The company reported restructuring costs and branch closure costs of £90.6m for 2020, compared to £43.7m in the previous year.
Crosbie added: “The strategic advantage of our digital platform is evident in the way we are responding rapidly to customers’ needs, including the launch of a new current account, introducing leading mortgage products and improving the overall experience for our customers.
“Throughout a challenging year, TSB colleagues excelled in supporting our customers and I want to thank all of them for their extraordinary service. Our priority going forward is our growth strategy, delivering exceptional customer experience and returning to profitability.”
Last year, TSB has announced its plans to close 164 branches, as part of its future growth strategy announced in November 2019.