- It will cut roles as part of a restructuring from its fraud and central operations
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Banking group TSB has said it is closing 36 branches and cutting 250 jobs across the business.
The group told employees today it would cut roles in its fraud operations and central operations, as well as its branch network due to the closure of 36 physical locations.
The latest round of branch closures will start in September, and continue through to May next year – the full list of branch closures is below.
Trade union Unite said the decision by the UK high street lender was a ‘grave mistake’.
‘These workers perform essential work in the fraud departments and across the branch network,’ Unite’s regional officer Andy Case said.
Unite said it will be holding fresh negotiations with TSB about ways to further reduce job losses.
However, TSB have said they have been forced to make the cuts in a restructuring plan in order to remain competitive, as 96 per cent of all TSB transactions now take place outside of a branch.
‘The decision to close a branch is never taken lightly, but our customers are now doing most of their banking digitally and we need to move to a better balance of digital and face-to-face services.
‘We remain committed to a national branch network and through innovation and integration with video, telephone, digital, branch and other face-to-face services TSB customers have more ways to bank with us than ever before.’
Following these changes TSB will have 175 branches across the UK.
A spokesman from the bank said earlier this year: ‘We have been clear about our focus on reducing costs, but as with any announcements about changing how we operate, we always consult with our colleagues first.’
The move was revealed in TSB’s full-year financial results, which showed the business made a pre-tax profit of £237 million over 2023, nearly 30 per cent more than the previous year.
The jump was driven by an increase in its income of more than £50 million, as it benefited from higher interest rates which have pushed up the cost of borrowing.
It proposed paying a dividend of £120 million to parent company Sabadell in the first quarter of this year as a result of the improved performance.
Nevertheless, the bank has a higher cost-to-income ratio than other lenders, such as rivals Santander UK and Virgin Money – meaning the amount it spends on running the business as a percentage of the amount it generates in income.
The announcement comes after Lloyd’s, another one of the UK’s largest banks, said it would cut 1,600 jobs in its branches in a massive shakeup of its operation, which would see the business provide more services online.
As part of the revamp, around 870 new jobs would be created in ‘relationship growth’ teams, Lloyd’s said.
Banks have steadily disappeared from Britain’s high streets over the last decade, with 6,000 branches having closed since 2015.
The trend is set to continue into 2024, with almost 200 outlets earmarked for closure some time this year – on top of 645 that were shuttered last year.
According to consumer group Which?, banks have announced that at least 189 branches will close their doors this year.
Lloyd’s and Halifax will also slash the most branches, with 60 and 47 closures planned respectively.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
