TSB does not anticipate significant further costs related to the migration, despite the large remaining backlog of complaints, but it is still awaiting the outcome of two investigations. Sabadell bought the bank in 2015 for £1.7bn. The move could potentially make the bank easier to sell for Sabadell, after the parent company’s chairman, Josep Oliu, raised the prospect in December of a “consolidation” once TSB is profitable. Richard Meddings, the TSB executive chairman, said the bank is in the “design phase” of a plan to take more control of its IT systems from Sabis, but insisted the working relationship between TSB and Sabadell remains “very good”. TSB said the costs of the migration would be partially offset by the provisional recovery of £153m in compensation from its Sabadell-owned IT provider, Sabis, after reports of tensions with the parent company. About 140,000 people opened a new bank account or switched their account to TSB, compared with about 80,000 who moved away. Yet TSB still managed to grow to 5 million customers over the year. It also had to spend £122m to hire new staff to handle the deluge of complaints, as well as £33.5m in foregone fees in an attempt to retain customers. The bill for customer compensation has reached £125m, while the bank experienced £49.1m in fraud. TSB said it had received four times more complaints than otherwise expected, although complaints have returned closer to pre-migration levels even as IT issues have continued. More than 20,000 customer complaints remain unresolved, from the 204,000-plus received since the migration. Pester gave up 2018 bonuses related to the migration, but will still receive £801,030 in notice payments this year. Paul Pester resigned as TSB chief executive in September following intense criticism from regulators and MPs. The botched move in April resulted in up to 1.9 million customers being locked out of their current accounts for weeks. The bank, which is owned by Spain’s Banco de Sabadell, had a torrid year as it tried to migrate customers from TSB’s former owner, Lloyds Banking Group, on to a new system.
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