TSB boss insists he won’t quit as bank racks up £176m bill from IT meltdown
The embattled boss of TSB insisted he will not quit as the bank racked up a £176million bill for its IT meltdown.
Paul Pester said he was more committed to the lender than ever despite it sinking in to the red by £107million, after a disastrous computer upgrade that saw 1.9million customers locked out of online bank accounts, sparking a huge wave of fraud.
The debacle has cost the bank £176.4million so far, including £115.8million for compensation and refunds.
TSB boss Paul Pester insisted he will not quit
Another £30.7million is being trousered by consultants parachuted in to solve the problem. Law firm Slaughter and May is taking a cut for writing a report on what went wrong. This is due out soon and TSB has vowed to make it public.
If Pester is identified as a key architect of the fiasco, he is likely to face calls to go. The Financial Conduct Authority is also probing what happened and could take action.
Asked if he plans to resign, Pester said: ‘No. I’m as committed to TSB as I’ve ever been.’ The £107.4million loss for the first six months of 2018 was down from a £108.3million profit a year earlier. It triggered a £174.9million loss at TSB’s Spanish parent, Sabadell.
Only 26,000 customers quit TSB but more than 20,000 joined in the three months to June 30.