TSB’s disastrous IT meltdown costs company £105m

Financial Services | Latest News

TSBRetail banking group TSB, has blamed a computer meltdown for its announcement that the company lost a total of £105.4 million last year – compared to profits of £162.7m in 2017.

The problems originated from an IT upgrade that led to a series of serious problems for the bank. The initial programme costs £330.2m to fix. However, TSB announced that it would look to recover its losses from computer provider, Sabis.

Over 80,000 people left the bank last year, compared to only 30,000 in 2017 – many of the customers affected went weeks without access to the banks’ services.

TSB said it had resolved 90% of the 204,000 customer complaints received since the IT chaos.

Richard Meddings, TSB executive chairman, said in a statement: “Last year was TSB’s most challenging year. But we enter 2019 with renewed ambition to re-emerge as the leading challenger bank in the UK – firmly on the side of the customer.

“We have a multi-million-pound investment programme underway to help us grow our business banking offer across every town and city we serve.

“At a time when some banks are quietly retreating from communities, we’re proud to support local customers and businesses through our branches across the country, alongside digital and telephone banking.”

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