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TSB Bank has revealed its earnings have risen by more than a third this year as it prepares for a takeover santander For £2.9 billion.
The bank said its financial performance had improved despite consumer caution amid rising inflation and weak economic growth.
It reported a pre-tax profit of £270.6 million for the first nine months of 2025.
This was 38.2% more than the £195.8 million earned in the same period last year.
Operating expenses declined 7.5% year over year, driven by efforts to reduce business costs and “simplify” the bank.
The increase in earnings would be good news for TSB’s future owner Santender, which has struck a deal with the bank’s parent company. Sabadell For acquisition.
The deal valued TSB at £2.65 billion, but the sale price is expected to rise to £2.9 billion once the transaction is completed, which is expected early next year.
Symantec said acquiring TSB would help it be more profitable in the UK.
It plans to integrate the brand into its group, which has raised concerns about job cuts and branch closures at the combined bank.
TSB, which is the 11th largest bank for mortgages in the UK, said it had been in a “challenging lending market” during the year.
It said total customer lending remained broadly stable year on year, but mortgage applications increased by 9%.
Savings balances increased but this was partly offset by increased spending from current accounts and higher tax payments for business customers.
“UK consumers remain cautious but resilient in an uncertain economic environment,” the bank told investors.
“Inflation has risen slightly in 2025 and economic growth has weakened in the second half of the year, but the housing market remains stable and interest rates are seen gradually declining.”
The TSB also said it helped more than 275 people flee abusive situations in the first nine months of 2025 through its Emergency Migration Fund.
The fund was launched three years ago and gives domestic abuse victims up to £500 to pay for essentials, without requiring them to pay it back.