TSB parent Banco Sabadell has posted a net profit of €253.9m for the first quarter of fiscal 2018, up 32.9% year-on-year.
The results release is however overshadowed by the ongoing botched IT migration at TSB.
In a masterly understatement, Sabadell said in its results release that “certain incidents arose in digital banking access which required disconnecting the online service and mobile application ..to carry out the necessary technological adjustments.
“This service disruption affected some customers and caused a negative reaction in the UK…normal conditions will be progressively restored over the coming days.”
TSB’s ongoing IT shambles has been a customer service and PR disaster of nightmare proportions and initially handled very badly by the bank.
TSB fights back
TBS is now fighting back. Having admitted that only about one half of its customers can access digital banking services, it is to waive all overdraft and interest charges for retail and SME customers for April.
TSB will also increase to 5% the interest rate on its Classic Plus current account from 3% in an attempt to forestall mass account switching to rivals by disgruntled customers.
TSB CEO Paul Pester told the BBC: “As we moved over to our new banking platform last weekend, the landing was an incredibly bumpy one for our customers, and for that I am truly sorry. This is not the level of service that we pride ourselves on providing – nor is it what our customers have come to expect from TSB.
“Of course, customers can rest assured that no one will be left out of pocket as a result of these problems.”
IBM to the rescue
Pester added that TSB is bringing in outside assistance from IBM in an attempt to resolve ongoing issues with its IT upgrade.
Profit before tax at TSB fell by 39% y-o-y to £19.3m in the first quarter.