Home / Business and Economy / TSB Profits Up 21% Amid Consumer Caution
TSB Profits Up 21% Amid Consumer Caution
7 Feb
Summary
- TSB reported a 21% profit increase to £350m in 2025.
- Customer lending remained flat amid challenging market conditions.
- Consumers are described as cautious yet resilient due to economic uncertainty.
TSB reported a significant 21% increase in profits, reaching £350 million for the full year 2025. This performance was bolstered by an improved net interest margin, indicating a wider gap between lending rates and savings rates.
Despite the profit growth, the bank noted that customer lending was 'broadly flat' at £36 billion. This stagnation reflects a 'challenging' market and a general sentiment of caution among UK consumers.
Economic conditions in 2025 saw rising unemployment and weakening economic growth. These factors contribute to consumers remaining 'cautious, yet resilient,' according to a TSB spokesman.
The bank's financial results were released as its takeover by Santander moves closer to completion. The deal, valued up to £2.9 billion, was agreed upon last year and is expected to conclude later in 2026.
Concerns have been raised regarding the future of TSB's 175 physical branches following the acquisition by Santander. The full impact of the takeover on its branch network remains a key point of discussion.
