World Library  
Flag as Inappropriate
Email this Article

TSB Banking Group

Article Id: WHEBN0038834702
Reproduction Date:

Title: TSB Banking Group  
Author: World Heritage Encyclopedia
Language: English
Subject: Lloyds Banking Group, Cheltenham & Gloucester, Clydesdale Bank, The Royal Bank of Scotland, List of companies of Scotland
Collection:
Publisher: World Heritage Encyclopedia
Publication
Date:
 

TSB Banking Group

TSB Banking Group plc
Type Public
Traded as LSE: TSB
Industry Financial services
Predecessors Lloyds TSB, Cheltenham & Gloucester
Founded 9 September 2013
Headquarters London (TSB Banking Group plc)[1]
Edinburgh (TSB Bank plc)
,
UK
Number of locations 631 branches
5 operations centres
2 telephony centres
Key people Will Samuel
(Chairman)
Paul Pester
(Chief Executive)
Products Banking and insurance
Revenue £752 million (2013)[2]
Operating income £67 million (2013)[2]
Net income £172 million (2013)[2]
Employees 8,000
Website .uk.co.tsbwww

TSB Banking Group plc is a British-based financial institution which provides retail banking services through its principal subsidiary TSB Bank plc. TSB Bank plc operates a nationwide network of 631 branches across England, Scotland and Wales. TSB launched on 9 September 2013, with more than 4.6 million customers and over £20 billion of loans and customer deposits, and is headquartered in Edinburgh. The bank was formed from a number of Lloyds TSB branches in England and Wales, all branches of Cheltenham & Gloucester and the business of Lloyds TSB Scotland. These were transferred to the existing Lloyds TSB Scotland plc,[3] which was renamed TSB Bank plc.

The divestment of TSB from Lloyds Banking Group was necessary due to a European Commission ruling that the British government's purchase of a 43.4% stake in the group in 2009 counted as state aid. The ruling required that the group sell a portion of its business. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. Following an initial public offering in June 2014,[4] followed by a further share sale in September 2014, Lloyds Banking Group currently retains a 50% stake in TSB Banking Group.[5]

The TSB brand was previously used by the Trustee Savings Bank prior to its merger with Lloyds Bank in 1995.

History

Lloyds TSB Group bought HBOS in January 2009 and renamed itself Lloyds Banking Group.[6] In 2009, following the UK bank rescue package, HM Government took a 43.4% stake in Lloyds Banking Group (since reduced to 24.9%[7]), which later announced that it would sell a standalone retail banking business of 632 branches and most accounts held at those branches in order to comply with European Commission state aid requirements.[8]

TSB Newcastle city centre, a former Lloyds TSB branch

Codenamed "Verde", the group's divestment plan identified 632 branches which were transferred to a new business. Customers with accounts held by the branches and staff employed within them were also transferred. A number of Lloyds TSB branches in England and Wales, together with all branches of Lloyds TSB Scotland plc and Cheltenham & Gloucester plc, were brought together to form the new business, which operates under the TSB brand as TSB Bank plc.[3] The remainder of the Lloyds TSB business was rebranded as Lloyds Bank.[9]

Lloyds Banking Group reached a heads-of-terms agreement in July 2012 to sell the Verde branches to The Co-operative Bank for £750 million.[10][11] The final transfer of TSB Bank plc to the new owner was planned to be completed by late 2013. In February 2013, it was reported that Lloyds Banking Group was considering a stock market flotation of the TSB business as an alternative, should the transfer not be completed, and they would make a final decision by the end of July. Co-operative Banking Group blamed current economic conditions for delays in completing the deal and had sold its life insurance assets for £200-million in an effort to secure £1-billion needed to complete the deal.[12][13]

In April 2013, the Co-operative Bank announced that it would not proceed with the transaction, citing the economic environment and increasing regulatory requirements in the financial sector.[14] As a result, TSB Bank plc began operating as a separate business within Lloyds Banking Group on 9 September 2013,[15] with the intention of selling it off through an initial public offering.[16] Lloyds Banking Group announced that 25% of TSB's shares would be floated on 24 June 2014,[17] but, with the offer being ten-times oversubscribed, 38.5% of TSB's shares were sold at 260p on 20 June.[18] Unconditional trading in the shares started on 25 June 2014. A further 11.5% of TSB Banking Group shares were sold by Lloyds Banking Group in September 2014, bringing its share holding down to 50%.[5]

In 1986, the legal entity, Trustee Savings Bank Plc became TSB Scotland Plc and, in 1999, TSB Bank Scotland became Lloyds TSB Bank Scotland. This company was re-registered under the name TSB Bank Plc in 2013.[19]

Services

A branch of TSB, formerly Cheltenham & Gloucester, on the High Street in Shrewsbury

The bank offers a full range of personal and business banking and financial services, including current accounts, mortgages, credit products, insurance, and savings products. TSB Bank is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority.[20] It is a member of the Financial Ombudsman Service and the Financial Services Compensation Scheme.

The bank uses the following series of sorting codes:—
Range Note
30 to 39 former Lloyds Bank branches
77-00 to 77-44
77-46 to 77-99
former TSB branches
(England and Wales)
87 former TSB Scotland

Operations

TSB Bank plc has:

References

  1. ^ http://www.tsb.co.uk/assets/pdf/investors/TSB-2014-Q3-Results-FINAL-RNS.pdf
  2. ^ a b c "Prospectus". TSB Banking Group. Retrieved 8 September 2014. 
  3. ^ a b Emma Simon (26 November 2012). "Millions of Lloyds customers told banking details to change". Daily Telegraph. Retrieved 16 March 2013. 
  4. ^ "TSB shares jump on trading debut and lift prospects for future Lloyds sell-off". The Guardian. 20 June 2014. Retrieved 20 June 2014. 
  5. ^ a b "Lloyds Bank sale of TSB stake shows demand for UK banks". Reuters. 26 September 2014. Retrieved 5 October 2014. 
  6. ^ "Lloyds HBOS merger gets go-ahead".  
  7. ^ "Lloyds stake sale raises £4.2bn".  
  8. ^ Rights Issue and Capital Enhancement Proposals Presentations and Webcasts, Lloyds Banking Group, 3 November 2009
  9. ^ Mark Banham (13 September 2010). "Lloyds TSB to rebrand as Lloyds Bank". Marketing. Retrieved 16 March 2013. 
  10. ^ Graham Hiscott (19 July 2012). Proud to make banking boring again': Co-op buys 632 branches from Lloyds and aims to restore faith in the industry"'". Daily Mirror. Retrieved 16 March 2013. 
  11. ^ Robert Peston (19 July 2012). "Lloyds bigs up the Co-op". BBC News. Retrieved 16 March 2013. 
  12. ^ Sharp, Tim (22 March 2013). "Economic woes hit Co-op Verde buyout". Herald Scotland. Retrieved 24 April 2013. 
  13. ^ "End of an era: Co-operative Group set to sell-off General Insurance". Co-operative News. 21 March 2013. Retrieved 24 April 2013. 
  14. ^ "Lloyds' branch sale to Co-op falls through". BBC News. 24 April 2013. Retrieved 24 April 2013. 
  15. ^ "Lloyds faces internet issues on TSB launch day". BBC News. 9 September 2013. Retrieved 14 September 2013. 
  16. ^ "Update on 24th April 2013". Lloyds TSB. 24 April 2013. Retrieved 24 April 2013. 
  17. ^ "TSB IPO price range announced". 10 June 2014. Retrieved 8 September 2014. 
  18. ^ "TSB shares jump on trading debut and lift prospects for future Lloyds sell-off". The Guardian. 20 June 2014. Retrieved 25 June 2014. 
  19. ^ Registered in Scotland No. SC095237
  20. ^ "Information about us". TSB Bank. September 2013. Retrieved 13 September 2013. 
  21. ^ Branches to form part of TSB Bank plc
  22. ^ Boyce, Lee (24 April 2013). "Will you be able to buy shares in TSB? Lloyds set to launch share-listing of 632 branches it failed to sell to Co-op". This is Money. Retrieved 3 June 2013. 
  23. ^ "Locations". TSB Careers. Retrieved 3 June 2013. 

External links

  • Official website
  • TSB Banking Group - Investor Relations
  • TSB Careers
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 


Copyright © World Library Foundation. All rights reserved. eBooks from Project Gutenberg are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.