TSB chairman defends closures
Friday 24 March 1995
Banking union Bifu attacked the branch closures as a "horrendous number, and wholly unnecessary".
Noel Howell, a Bifu spokesman, said that TSB had informed the union that the first 71 branches to be closed from the beginning of 1995 to the end of April contributed £10m profits to the bank. The first 71 closures would involve 300 job losses and would affect 200,000 customers, Mr Howell said. "Why close branches that are profitable?" he asked.
Sir Nicholas told the TSB's annual general meeting: "We do not like doing this but the fact is that some branches can never expect to make a reasonable return on the capital invested in them. Fewer customers use branches than used to...We still have 1,200 branches and a process of carefully judged amalgamation and closure must continue if we are to have the resources to provide a first-class service to customers, while maintaining shareholders' rewards for risking their capital.
Mr Howell said last night: "There's nothing carefully judged about closing 200 branches in a year."
The TSB chairman sought to reassure shareholders that a Barings-style derivatives disaster could never happen to the bank. For the first time the annual report detailed TSB's internal control systems. "There is a strong control culture in place," Sir Nicholas said.
TSB has been the subject of continued speculation because of its declared interest in buying a building society. Sir Nicholas said: "We will build on the group's streams of income and we will keep a careful eye on the opportunities to acquire other businesses which would add value to our existing businesses - and by that I mean value for shareholders."
- 1 Frank Lampard's face drops when Holly Willoughby introduces him as a 'Man City legend'
- 2 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 The Visit: Trailer for M Night Shyamalan's latest horror film is terrifying
- 5 9/11: Iranian General accuses US of organising September 11 terror attacks
General Election 2015: Tories sack candidate who said she would never support 'the Jew' Ed Miliband
9/11: Iranian General accuses US of organising September 11 terror attacks
General Election 2015: Stephen Hawking says he will vote Labour
Manny Pacquiao begs Indonesia president to spare life of drug smuggler Mary Jane Veloso about to be executed
Yazidi sex slaves undergoing surgery to 'restore virginity' after being raped by Isis militants
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
HSBC review into moving headquarters from UK 'underway'
iJobs Money & Business
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...
£45K - £55K (DOE) + Benefits: Guru Careers: We are seeking a full stack .NET D...