Initial Public Offering(IPO)





Hello. We’re TSB, Britain’s newest bank, and we’re proud to be back on 631 high streets right across Britain.

We’re here to bring more competition to the UK banking market, and ultimately better banking for all. The way we’ll do that is by serving only individuals and local business customers. That’s why we won’t be offering things like investment banking, or overseas speculation, or big corporate finance.

Instead, our 8000 staff will focus simply on looking after £22 billion on behalf of our 4.5million customers. Because the more we can help our customers, and the communities they are part of, to thrive, the more successful TSB will be. We call this kind of balanced, straightforward banking "local banking".

It’s the kind of banking that we believe is the best way to help the households and local businesses that make up the communities of which we are all a part.

Of course, this approach to banking is nothing new. In fact, it’s over 200 years old.

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TSB's Fundamentals (TSB)

too bad i only got just shy of 1500 shares allocated but sold them at 292 so an easy £450 in the bank so to speak

HALF YEAR RESULTS

OPERATIONAL AND FINANCIAL SUMMARY
· Premium listing on the London Stock Exchange achieved on 25 June 2014, with a larger than expected free-float of 38.5% reflecting investor demand.

· In line with expectations, TSB generated a management profit before tax of £78.6m (Franchise: £47.0m; Mortgage Enhancement: £31.6m) and £128.5m on a statutory basis including significant one off items.

· Franchise banking net interest margin increased slightly, in line with expectations, to 3.62% resulting from lower funding costs. The Group's loan loss ratio of 47 basis points reflects the continuing improvement in the economic environment and the quality of the loan book.

· TSB attracted a 9.2% share of current account gross flow in the quarter(5); well above the long term target of consistently attracting more than 6%. This was supported by the initial launch of TSB's popular Classic Plus current account.

· TSB remains strongly capitalised with a pro forma fully loaded Common Equity Tier 1 capital ratio of 18.2%.

· The build of TSB's mortgage intermediary capability remains on track for delivery in Q1 2015.

"The first half of 2014 has been a strong six months for TSB Banking Group. The business completed its successful IPO, delivered financial performance consistent with expectations and made good initial progress in delivery of its growth strategy.

I have been particularly pleased with the way in which consumers across Britain have reacted to TSB's "local banking" model. This is reflected in our market share of current account switching and new current account openings of 9.2% for the quarter - well ahead of our target to achieve consistently above 6%.

Looking ahead, we continue on our mission of bringing TSB's local banking model to more customers across Britain and continuing to grow our business as a result."
Paul Pester, Chief Executive Officer

Interim Management Statement

· TSB generated a Q3 2014 management profit before tax of £41.6m (Franchise: £20.7m; Mortgage Enhancement: £20.9m) and a statutory profit before tax of £33.1m.

· Franchise banking net interest margin remained stable at 3.61%.

· The Group's AQR of 41 basis points reflects the continuing improvement in the economic environment and the quality of the loan book.

· Share of current account gross flow in the quarter of 9.7%(4)(5), above the long term target of 6%.

· TSB remains strongly capitalised with a pro forma fully loaded Common Equity Tier 1 capital ratio of 18.8%.

· The build of TSB's mortgage intermediary capability remains on track for delivery in Q1 2015.

· LBG shareholding down to 50% and TSB has joined the FTSE 250 Index.


"While we have always been clear that we are on a five year journey to grow TSB and its returns, it's great to see people right across Britain continuing to vote with their feet for TSB's local banking model.

Nearly 1 in 10 of all customers who opened new bank accounts or switched during the last quarter chose TSB - this is well ahead of our long term target and is testament to the great service our TSB Partners continue to deliver.

The strong current account performance is one of the factors that has enabled us to grow our customer deposits by £0.5bn to £24.2bn. Meanwhile our plans to enable customers across Britain to buy a TSB mortgage from their local mortgage broker from Q1 2015 remain on track.

I thank all TSB customers and Partners for continuing to reinforce TSB as Britain's challenger bank."
Paul Pester (Chief Executive Officer)

Investec Buy 274.40 290.00 300.00 Upgrades

Final results Wednesday 25th February.

Final Results

Strategic delivery
- 8.4% share of all new and switching bank accounts over the last 12 months(5) - almost 500,000 new bank accounts opened with TSB in 2014.
- Launch of TSB's mortgage broker service as planned - with over £300 million of applications received to date.
- More customers than ever, as measured by our net promoter score, would recommend TSB(6).
- The only high street bank rated in the top quartile for customer service across major UK brands by Which? Magazine(7).

2015 outlook

We expect:

- To consistently attract a greater than 6% share of gross flow of all switching and new personal bank accounts through 2015.
- The balance of Franchise net lending to increase by around £1.5 billion in 2015, with net growth from mid-way through the year.
- To meet these growth targets while controlling costs to no more than £720 million in 2015.
- The Franchise net interest margin to be broadly flat in 2015, with a positive start offset by subsequent compression.
- Franchise other income to fall by c. £15 million primarily driven by lower interchange income.

"2014 was a pivotal year for our business as we started to establish TSB as Britain's challenger bank.

In terms of financial performance, I'm pleased that, on balance, we've exceeded the expectations we set out at the time of our IPO in June last year. In addition, I'm delighted that we've made such a strong start in delivering TSB's growth strategy.

With 8.4% of all people switching or opening a bank account in 2014 choosing TSB; with the recent successful launch of our TSB mortgage broker service and with more people than ever before now recommending TSB to friends and family, it's great to have reached "base camp" on our mission to "bring more competition to UK banking"."

Paul Pester
Chief Executive Officer

Can't see the word Dividend anywhere, does that mean that they don't pay one?

If you bought them in the offer, I think you get 5 percent more shares in December. This is a bit like a divi.

No I didn't, so no actual divi yet.

The price is down 30 p or so over the last 6 months , when they were also rated a buy. The prospects look pretty good.

What's going on . The price is rocketting

Just heard . Takeover talks

RNS Poss offer.

Held these but thought they're going nowhere so sold . Can't believe they can be had so early after breaking free .

They are reckoned to be well undervalued. Perhaps not now though.

Takeover? By who.

Banco de Sabadel a Spanish bank £3.40 per share.

Thanks Victim.

I'm sure these broker's work hard for their money, but how much work has gone into these new target prices today!!

Canaccord Genuity Hold 326.80 235.00 340.00 Upgrades

Investec Hold 326.80 300.00 340.00 Cuts

Berenberg Sell 328.15 220.00 220.00 Reiterates

Numis Hold 328.15 370.00 340.00 Downgrades

Credit Suisse Underperform 328.15 240.00 240.00 Retains