TSB has reported a sharp rise in profits for the first quarter of 2025, with pre-tax earnings almost doubling year-on-year.
The bank posted a profit of £101.3 million for the three months to March, up from £53.4 million during the same period in 2024. The jump was attributed to a surge in mortgage lending and ongoing efforts to cut costs, with operating expenses reduced by 4.7%.
The lender saw a notable increase in activity ahead of the recent stamp duty threshold changes, helping to fuel a 12% rise in secured lending, which reached £1.5 billion for the quarter. In March alone, TSB supported more than 3,000 home purchases – a 36% increase compared to the previous year.
TSB also recorded strong demand for personal finance products, with credit card lending up 5% and personal loans climbing 13% – its most active quarter for loans since 2020.
In a statement, the bank said: “The UK consumer remains resilient in the face of sluggish economic growth and uncertainty about the global outlook.”
However, TSB also cautioned that growing trade tariffs and wider geopolitical tensions could weigh on future growth and employment prospects.
The bank increased its provisions for bad debt to £16.5 million, slightly up from £15.4 million last year.
TSB’s performance comes amid an ongoing takeover battle involving its Spanish parent company, Sabadell, which is fending off a hostile bid from rival banking group BBVA. The deal is currently awaiting approval from the Spanish government.
