TSB blasts big banks’ “stranglehold” in Q1 results

TSB store front 700 x 450

TSB chief executive Paul Pester has called on the Competition and Markets Authority to break the “stranglehold” of big UK banks.

In the firm’s first quarter results, published today, Pester says TSB is already taking customers from big banks, but that the sector was still uncompetitive.

He says: “So, whilst I think TSB is doing its bit to break the stranglehold the big five banks have on the UK market, we can’t do this alone. We need the CMA to use the once in a generation opportunity they have to help us bring the full force of competition to bear on the UK banking market.

“We want all bank customers to know what they’re paying for their banking; all customers – including overdraft users – to be able to switch easily; and all customers to be aware of their right to switch banks. Only then will competition really start to work and the culture of UK banks finally shift to serving customers on their terms – rather than on the banks’.”

TSB’s total lending rose 28.3 per cent to £27.4bn in the first quarter of 2016. TSB says this was driven by mortgage lending.

Pre-tax profits rose 53 per cent from last year to £52.6m in the three months to the end of March,

Franchise customer lending was £22.4bn, up £1.3bn on the previous quarter.