TSB urges fair play for the challenger banks despite Brexit uncertainties

Brexit worries should not be allowed to distract the competition regulator from creating a level playing field for challenger banks, the boss of TSB said today.

“The Competition and Markets Authority cannot take its eye off the ball because of Brexit uncertainties,” said Paul Pester, chief executive of the bank which was carved out of Lloyds and then bought by Spain’s Sabadell.

The regulator is due to make its final report on retail banking next month.

TSB’s profits surged from £44 million to £108 million in the first half as it gained more than its share of customers switching accounts and benefited from taking on £2.7 billion of former Northern Rock mortgage customers at the end of last year.

That helped to push total lending up by 29% to £27.9 billion in the past 12 months.

But the bank cautioned that lower interest rates for longer and increased IT costs in 2017 would have an impact on future financial performance.