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TSB: Shaky economic system is making Britons cautious

TSB has warned that consumers are growing ‘cautious’ amid economic uncertainty as it released full-year results ahead of its takeover by Santander.

The lender, which has 5m customers, revealed that profits rose by 21 per cent to £350m in 2025.

TSB was boosted by a rise in its net interest margin – the gap between rates charged to borrowers and those paid to savers. But customer lending of £36billion was ‘broadly flat’ compared with the previous year in a ‘challenging’ market.

A TSB spokesman said: ‘UK consumers remain cautious, yet resilient, in an uncertain economic environment. Unemployment increased in 2025 and economic growth weakened.’

Warning: TSB has said that consumers are growing 'cautious' amid economic uncertainty as it released full-year results

Warning: TSB has said that consumers are growing ‘cautious’ amid economic uncertainty as it released full-year results

TSB’s Spanish owner Sabadell agreed to sell the lender to Santander last year in a deal valued at up to £2.9billion.

The takeover, which is expected to complete later this year, has raised fears for the future of TSB’s 175 branches.

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