TSB’s problems with its IT infrastructure directly led to a loss of £176.4m ($231m).
The TSB problems with IT led to a number of costs. These were mainly post-migration costs, such as customer compensation, additional resources, foregoing overdraft charges, and more.
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TSB problems
The IT problems led to a loss overall of £107.4m for the first six months of the year.
Approximately 26,000 customers closed their accounts with TSB as a result of the IT outage.
TSB ended up recruiting over 1,800 people and redeployed another 700 into customer-facing roles to handle demand following the trouble.
To ensure customer satisfaction, TSB created a team of 260 staff to make sure no customer was left out of pocket.
As at 30 June 2018, TSB’s total customer lending was £31.0 billion and total customer deposits stood at £29.6 billion. In addition, its Common Equity Tier 1 capital ratio remained at 19.2%.
Paul Pester, TSB Chief Executive Officer, says: “We’re making progress in resolving the service problems customers experienced following our IT migration, and we will continue to work tirelessly until we have put things right. I know how frustrated many customers have been by what’s happened. It was not acceptable, and was not the level of service that we pride ourselves on – nor was it what our customers have come to expect from TSB.
“It has been a difficult time for customers and I am grateful to them for their patience. I would also like to say thank you to our Partners for their enormous efforts. They have done everything in their power to continue serving our customers, and I am proud to see that the values on which the Bank has been built have shone through during this time.”
