TSB Bank (United Kingdom)

From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article is about the current TSB Bank. For the former, see Trustee Savings Bank. For other uses, see TSB.
TSB Bank plc
Public
Traded as LSETSB
Industry Banking
Financial services
Predecessor Lloyds TSB, Cheltenham & Gloucester
Founded 9 September 2013
Headquarters Edinburgh (TSB Bank plc)
London (TSB Banking Group plc)
,
UK
Number of locations
631 branches
5 operations centres
2 telephony centres
Key people
Will Samuel
(Chairman)
Paul Pester
(Chief Executive)
Products Retail banking
Commercial banking
General insurance
Life insurance
Revenue £900.2 million (2014)[1]
£267.8 million (2014)[1]
£134.5 million (2014)[1]
Number of employees
8,500

TSB Bank plc is a financial institution which provides retail banking services in the United Kingdom. It is the principal subsidiary of TSB Banking Group plc. TSB Bank plc operates a nationwide network of 631 branches across England, Scotland and Wales. TSB launched on 9 September 2013, with more than 4.6 million customers and over £20 billion of loans and customer deposits, and is headquartered in Edinburgh. The bank was formed from a number of Lloyds TSB branches in England and Wales, all branches of Cheltenham & Gloucester and the business of Lloyds TSB Scotland. These were transferred to the existing Lloyds TSB Scotland plc,[2] which was renamed TSB Bank plc.

The divestment of TSB from Lloyds Banking Group was necessary due to a European Commission ruling that the British government's purchase of a 43.4% stake in the group in 2009 counted as state aid. The ruling required that the group sell a portion of its business. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. Following an initial public offering in June 2014,[3] followed by a further share sale in September 2014, Lloyds Banking Group currently retains a 50% stake in TSB Banking Group.[4] TSB accepted a takeover offer from the Spanish bank Sabadell in March 2015, subject to regulatory approval.

The TSB brand was previously used by the Trustee Savings Bank prior to its merger with Lloyds Bank in 1995.

History[edit]

Establishment[edit]

Lloyds TSB Group bought HBOS in January 2009 and renamed itself Lloyds Banking Group.[5] In 2009, following the UK bank rescue package, HM Government took a 43.4% stake in Lloyds Banking Group (since reduced to below 17%[6]), which later announced that it would sell a standalone retail banking business of 632 branches and most accounts held at those branches in order to comply with European Commission state aid requirements.[7]

TSB Newcastle city centre, a former Lloyds TSB branch

Codenamed "Verde", the group's divestment plan identified 632 branches which were transferred to a new business. Customers with accounts held by the branches and staff employed within them were also transferred. A number of Lloyds TSB branches in England and Wales, together with all branches of Lloyds TSB Scotland plc and Cheltenham & Gloucester plc, were brought together to form the new business, which operates under the TSB brand as TSB Bank plc.[2] The remainder of the Lloyds TSB business was rebranded as Lloyds Bank.[8]

Lloyds Banking Group reached a heads-of-terms agreement in July 2012 to sell the Verde branches to The Co-operative Bank for £750 million.[9][10] The final transfer of TSB Bank plc to the new owner was planned to be completed by late 2013. In February 2013, it was reported that Lloyds Banking Group was considering a stock market flotation of the TSB business as an alternative, should the transfer not be completed, and they would make a final decision by the end of July. Co-operative Banking Group blamed current economic conditions for delays in completing the deal and had sold its life insurance assets for £200-million in an effort to secure £1-billion needed to complete the deal.[11][12]

In April 2013, the Co-operative Bank announced that it would not proceed with the transaction, citing the economic environment and increasing regulatory requirements in the financial sector.[13] As a result, TSB Bank plc began operating as a separate business within Lloyds Banking Group on 9 September 2013,[14] with the intention of selling it off through an initial public offering.[15] Lloyds Banking Group announced that 25% of TSB's shares would be floated on 24 June 2014,[16] but, with the offer being ten-times oversubscribed, 38.5% of TSB's shares were sold at 260p on 20 June.[17] Unconditional trading in the shares started on 25 June 2014. A further 11.5% of TSB Banking Group shares were sold by Lloyds Banking Group in September 2014, bringing its share holding down to 50%.[4]

In 1986, the legal entity, Trustee Savings Bank Plc was renamed TSB Scotland Plc and, in 1999, TSB Bank Scotland (as it had become known) became Lloyds TSB Scotland. This company was re-registered under the name TSB Bank in 2013.[18]

Sabadell takeover[edit]

On 12 March 2015, TSB confirmed a takeover bid by the Spanish bank Sabadell for £1.7 billion, less than a year after it rejoined the stock market through Lloyds Banking Group's sale of 50% of its holding.[19] TSB agreed to the takeover on 20 March 2015, subject to regulatory approval.[20] Sabadell has made clear that it intends to maintain TSB as a robust competitor in the UK banking sector and will continue to use the TSB name and branding. [21] [22]

Services[edit]

A branch of TSB, formerly Cheltenham & Gloucester, on the High Street in Shrewsbury

The bank offers a full range of personal and business banking and financial services, including current accounts, mortgages, credit products, insurance, and savings products. TSB Bank is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority.[23] It is a member of the Financial Ombudsman Service and the Financial Services Compensation Scheme.

The bank uses the following series of sorting codes:—

Range Note
30 to 39 former Lloyds Bank branches
77-00 to 77-44
77-46 to 77-99
former TSB branches
(England and Wales)
87 former TSB Scotland

Operations[edit]

TSB Bank plc has:

Ownership[edit]

The shares of the stock of TSB Banking Group are traded on the London Stock Exchange, under the symbol: TSB. The shareholding in the group's stock was as depicted in the table below:[27]

TSB Banking Group plc stock ownership
Rank Name of Owner Percentage Ownership
1 Lloyds Banking Group 50.00
2 Majedie Asset Management Limited 05.12
3 Other Investors 44.88

References[edit]

  1. ^ a b c "Preliminary Results 2014" (PDF). TSB Banking Group. Retrieved 3 April 2015. 
  2. ^ a b Emma Simon (26 November 2012). "Millions of Lloyds customers told banking details to change". Daily Telegraph. Retrieved 16 March 2013. 
  3. ^ "TSB shares jump on trading debut and lift prospects for future Lloyds sell-off". The Guardian. 20 June 2014. Retrieved 20 June 2014. 
  4. ^ a b "Lloyds Bank sale of TSB stake shows demand for UK banks". Reuters. 26 September 2014. Retrieved 5 October 2014. 
  5. ^ "Lloyds HBOS merger gets go-ahead". BBC News. 12 January 2009. Retrieved 16 March 2013. 
  6. ^ "Lloyds stake sale raises £4.2bn". BBC News. 26 March 2014. Retrieved 26 March 2014. 
  7. ^ Rights Issue and Capital Enhancement Proposals Presentations and Webcasts, Lloyds Banking Group, 3 November 2009
  8. ^ Mark Banham (13 September 2010). "Lloyds TSB to rebrand as Lloyds Bank". Marketing. Retrieved 16 March 2013. 
  9. ^ Graham Hiscott (19 July 2012). "'Proud to make banking boring again': Co-op buys 632 branches from Lloyds and aims to restore faith in the industry". Daily Mirror. Retrieved 16 March 2013. 
  10. ^ Robert Peston (19 July 2012). "Lloyds bigs up the Co-op". BBC News. Retrieved 16 March 2013. 
  11. ^ Sharp, Tim (22 March 2013). "Economic woes hit Co-op Verde buyout". Herald Scotland. Retrieved 24 April 2013. 
  12. ^ "End of an era: Co-operative Group set to sell-off General Insurance". Co-operative News. 21 March 2013. Retrieved 24 April 2013. 
  13. ^ "Lloyds' branch sale to Co-op falls through". BBC News. 24 April 2013. Retrieved 24 April 2013. 
  14. ^ "Lloyds faces internet issues on TSB launch day". BBC News. 9 September 2013. Retrieved 14 September 2013. 
  15. ^ "Update on 24th April 2013". Lloyds TSB. 24 April 2013. Retrieved 24 April 2013. 
  16. ^ "TSB IPO price range announced". 10 June 2014. Retrieved 8 September 2014. 
  17. ^ "TSB shares jump on trading debut and lift prospects for future Lloyds sell-off". The Guardian. 20 June 2014. Retrieved 25 June 2014. 
  18. ^ Registered in Scotland No. SC095237
  19. ^ "TSB confirms £1.7bn takeover move by Spain's Sabadell". 12 March 2015. 
  20. ^ "TSB agrees £1.7bn takeover by Spain's Sabadell". BBC News. 20 March 2015. Retrieved 20 March 2015. 
  21. ^ "TSB sold to Spanish bank in £1.7bn deal". Telegraph.co.uk. 20 March 2015. 
  22. ^ "TSB agrees £1.7bn takeover by Spain's Sabadell". BBC News. 
  23. ^ "Information about us". TSB Bank. September 2013. Retrieved 13 September 2013. 
  24. ^ "Branches to form part of TSB Bank plc" (PDF). lloydstsbtransfer.com. 
  25. ^ Boyce, Lee (24 April 2013). "Will you be able to buy shares in TSB? Lloyds set to launch share-listing of 632 branches it failed to sell to Co-op". This is Money. Retrieved 3 June 2013. 
  26. ^ "Locations". TSB Careers. Retrieved 3 June 2013. 
  27. ^ "TBS Banking Group - Major Shareholders". TBS Banking Group. Retrieved 27 December 2014. 

External links[edit]