Britain's first major new high street bank for decades as TSB is resurrected

 

Britain’s first major new high street bank for decades launches tomorrow in the resurrected form of TSB.

It consists of the 631 branches Lloyds was ordered to sell by Brussels in return for its state bailouts.

The change sees more than 4.6m Lloyds customers banking at those branches transfer to the new company. That is one in six of Lloyds’ entire customer base with more than £20bn of loans and customer deposits.

Tomorrow marks a key stage in a process that has seen many twists and turns for the earmarked branches known internally as Project Verde. They were to have been bought by the Coop but that deal collapsed in April when it emerged that the Co-op bank had a £1.5bn black hole in the accounts.

Lloyds had made Co-op its preferred bidder ahead of NBNK which offered £700m.

Now Lloyds will float TSB as a standalone company next year and has appointed JPMorgan and Citigroup to begin the process of talking to potential investors. A prospectus is expected to be issued in April with the float in mid-2014.

The whole process is to cost Lloyds about £1.3bn although Lloyds chief executive Victor Horta-Osorio, in testimony to MPs earlier this year, said the flotation option would cost the bank another £200m to £300m.

Due to the difficulties for Lloyds in offloading the banks, it has been granted an extension by the EU on the deadline for disposal, which was to have been in November 2013.

TSB is run by Paul Pester, the former Virgin Money chief who also led the integration of Santander’s various divisions.

Mr Pester, 49, has been preparing the split for the past two years, running the Project Verde operations on a twin track to prepare for either a sale or standalone flotation. Customers have already transferred to the new division, and it has been advancing its own loans despite still being owned by Lloyds.

But tomorrow will see the start of its formal new banking licence and will see the new TSB signage going up on branches across the country. That rebranding process is expected to take two days.

The TSB brand – famed for its catchphrase: “The bank that likes to say… Yes!” disappeared from the High Street two decades ago.

The new bank has its headquarters in 20 Gresham Street, which is on the site of the former London office of the original TSB.

Literature sent to customers in recent weeks suggests Mr Pester is planning to run the bank on the basis of being “local” in an attempt to differentiate it from the big multinational rivals. He will also play on the fact that it is not involved in “casino” investment banking and funding overseas businesses.

Re-birth for a lost staple of the British high street

Tomorrow’s launch will mark a re-birth of the TSB name on British high streets.

In 1810 the Reverend Henry Duncan established the first Trustee Savings Bank in Ruthwell, Scotland to help local families save and support them in times of financial difficulty due to accident or illness. Within five years such savings banks based on Rev Duncan’s model were operating across the country.

Over the decades it grew into a unified movement.

It floated in 1986 before merging with Lloyds in 1995. Lloyds disastrously bought HBOS, whose dangerously high risk corporate lending practices would have appalled Rev Duncan, during the financial crisis. The deal soon meant Lloyds had to be bailed out by the taxpayer – state support for which the European Commission demanded it offload more than 600 branches.

News
John Travolta is a qualified airline captain and employed the pilot with his company, Alto
people'That was the lowest I’d ever felt'
Life and Style
healthIt isn’t greasy. It doesn’t smell. And moreover, it costs nothing
News
i100

Other places that have held independence referendums
Arts and Entertainment
Pharrell dismissed the controversy surrounding
musicThe singer said 'the last thing I want to do is degrade'
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
News
news

Sport
footballThe latest scores and Twitter updates from tonight’s games, featuring Bayern Munich vs Man City and Chelsea vs Schalke
News
A male driver reverses his Vauxhall Astra from a tow truck
newsThe 'extremely dangerous' attempt to avoid being impounded has been heavily criticised
News
peopleThe Times of India said actress should treat it as a 'compliment'
Arts and Entertainment
Jack Huston is the new Ben-Hur
film

It scooped up an unprecedented 11 Academy Awards when it was first remade in 1959

News
news

Watch this commuter wage a one-man war against the Circle Line
Property
Home body: Badger stays safe indoors
lifeShould we feel guilty about keeping cats inside?
Life and Style
fashion

Olympic diver has made his modelling debut for Adidas

Arts and Entertainment
Toby Jones (left) and Mackenzie Crook in BBC4’s new comedy The Detectorists
tvMackenzie Crook's 'Detectorists' makes the hobby look 'dysfunctional', they say
Arts and Entertainment
Maxine Peake plays Hamlet at Manchester's Royal Exchange
theatreReview: Maxine Peake brings emotional ferocity to Shakespeare's starring part
Extras
10 best table lamps
indybest
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

IT Project Manager (technical, applications, infrastructure)

£55000 - £60000 Per Annum + benefits: Clearwater People Solutions Ltd: IT Proj...

English Teacher (Bristol and South Gloucestershire)

Negotiable: Randstad Education Bristol: English teachers for day to day cover,...

Teacher

Negotiable: Randstad Education Sheffield: Year 6 Teacher RequiredThis teaching...

SharePoint Administrator - Bishop's Stortford / Stansted

£30000 - £35000 per annum: Ashdown Group: SharePoint Administrator - Bishop's ...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week