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| TSB to close 82 branches next year to save costs | TSB to close 82 branches next year to save costs |
| (30 minutes later) | |
| TSB is to close 82 branches next year as part of a plan by new chief executive Debbie Crosbie to make £100m of cost savings by 2022. | TSB is to close 82 branches next year as part of a plan by new chief executive Debbie Crosbie to make £100m of cost savings by 2022. |
| The Spanish-owned bank has 540 branches and is trying to restore its reputation after last year's huge IT failure, which hit 1.9 million customers. | The Spanish-owned bank has 540 branches and is trying to restore its reputation after last year's huge IT failure, which hit 1.9 million customers. |
| The outlets to be shut will be named on 28 November after staff have been told. | The outlets to be shut will be named on 28 November after staff have been told. |
| TSB would not comment on job numbers, but it is thought that between 300 and 400 positions will be affected. | TSB would not comment on job numbers, but it is thought that between 300 and 400 positions will be affected. |
| Ms Crosbie replaced Paul Pester, who stepped down in September last year following the IT debacle that began in April 2018 when an attempt to move data to a new computer system went wrong. | Ms Crosbie replaced Paul Pester, who stepped down in September last year following the IT debacle that began in April 2018 when an attempt to move data to a new computer system went wrong. |
| Announcing the new strategy, she said: "The plan we're sharing today involves some difficult decisions, but it sets TSB up to succeed in the future. | Announcing the new strategy, she said: "The plan we're sharing today involves some difficult decisions, but it sets TSB up to succeed in the future. |
| "Our new strategy positions TSB to succeed in a challenging environment at a time when we know customers want something different and better from their bank." | "Our new strategy positions TSB to succeed in a challenging environment at a time when we know customers want something different and better from their bank." |
| The bank - which was spun out of Lloyds Banking Group - will spend £180m closing the branches and on other restructuring costs. | The bank - which was spun out of Lloyds Banking Group - will spend £180m closing the branches and on other restructuring costs. |
| TSB was created in 2013 under the instruction of the European Commission after Lloyds was bailed out by UK taxpayers in 2008. | TSB was created in 2013 under the instruction of the European Commission after Lloyds was bailed out by UK taxpayers in 2008. |
| It started with 631 branches, which included those that were branded Cheltenham & Gloucester as well as all Lloyds branches in Scotland. | It started with 631 branches, which included those that were branded Cheltenham & Gloucester as well as all Lloyds branches in Scotland. |
| That network has already been reduced in size and it is thought that under this latest reduction the staff affected will be offered redeployment opportunities where possible. | That network has already been reduced in size and it is thought that under this latest reduction the staff affected will be offered redeployment opportunities where possible. |
| Lloyds floated TSB as a stand-alone bank on the London stock market, but it was then bought by Sabadell of Spain in 2015. | Lloyds floated TSB as a stand-alone bank on the London stock market, but it was then bought by Sabadell of Spain in 2015. |
| As well as closing branches, Ms Crosbie said the bank would spend £120m on improving its digital offering and automating some of its branches. By 2022, it expects 90% of transactions to be self-service. | As well as closing branches, Ms Crosbie said the bank would spend £120m on improving its digital offering and automating some of its branches. By 2022, it expects 90% of transactions to be self-service. |
| The bank also wants to speed up the time it takes to open and start using a current account from seven days to 10 minutes. | The bank also wants to speed up the time it takes to open and start using a current account from seven days to 10 minutes. |
| Last year's IT failure drove the bank to a loss in 2018, although in the first half of this year it reported a profit of £21.1m. Ms Crosbie is aiming for profits of between £130m and £140m in 2022. | |
| Analysis: Just another bank | |
| By Simon Gompertz, personal finance correspondent | |
| The humiliation of last year's catastrophic breakdown has forced TSB to abandon grandiose promises. | |
| When it was hived off from Lloyds six years ago, it pledged to be a bank you could trust, without the "funny stuff" that tainted other scandal-ridden banks. | |
| It wowed people with a current account paying 5% interest. | |
| Its then chief executive, Paul Pester, attacked rivals for "savagely cutting branches" and made a firm commitment to his outlets, promising to expand the network. | |
| The IT failure knocked a deep dent in customer trust, and then TSB cut its flagship interest rate. | |
| And now Debbie Crosbie, the boss brought in to steady the ship, is targeting branches. | |
| It is true that the rise of the internet is forcing the industry to change. | |
| But that's the point. TSB promised it would be something different. Now we see it is just another bank. |