The balance sheet remains resilient with a Common Equity Tier 1 ratio of 17.3% (December 2022: 17.1%) and Liquidity Coverage ratio of 177.4% (December 2022: 195.8%).The contraction in deposits since the year end of £0.9 billion (2.5%) (December 2022: £36.3 billion) has been driven by current account customers moving funds to interest earning accounts as well as cost-of-living pressures. Year on year customer deposits have increased £162 million to £35.4 billion (June 2022: £35.3 billion) driven by customers taking advantage of TSB’s competitively priced savings products.Loans and advances to customers of £36.7 billion decreased by £1.2 billion (3.1%) year on year (June 2022: £37.9 billion) and by £1.3 billion (3.4%) compared to the year end (December 2022: £38.1 billion), reflecting lower customer demand in the rising interest rate environment, alongside management action to manage volume in a highly volatile and competitive mortgage market. ![]() Customer defaults are increasing but remain within expectation and below historic levels. The higher 2023 charge also reflects the uncertain economic outlook, increased interest rate environment and growing inflationary pressures for customers.
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