The UK's TSB has chalked up a whacking £107.4 million first half loss as the early costs of its disastrous IT migration to a new Banco Sabadell platform begin to emerge. TSB's notoriously botched migration to the new IT system in April locked customers out of online and mobile customers for over a month and led to a surge in cybercrime as criminals took advantage of the chaos. In its results statement, the embattled bank says its mobile app, online banking, telephone banking and branch service levels are now "much improved" after the breakdown, although a number of outstanding issues still persist. For the first six months, TSB has recognised additional post-migration costs, including customer compensation, additional resources and foregone income as a result of waived overdraft fees and interest charges, of £176.4 million. The bank, which had to bring in a team of firefighters of IBM to help rectify its systems, says it recruited over 1,800 people and redeployed a further 700 staff into customer-facing roles to support customers who felt badly let down by poor communications and service levels in the immediate aftermath of the migration. Around 26,000 customers switched their bank account away from TSB following the fiasco, although - somewhat surprisingly - more than 20,000 newcomers opened a new account or switched to TSB in the second quarter. TSB chief Paul Pester says the bank's financial performance in the first half was "significantly impacted" by the IT migration and subsequent service disruption. In more detail. the deivery of the migration programme resulted in:
UK bank Banco Sabadell's reported losses of £107.4m ($138.4m) and 26,000 customers in H1, because of its botched IT migration to a new Banco Sabadell platform. However, 20,000 new customers opened an account with the bank in Q2. Banco Sabadell's recruited more than 1,800 people and moved 700 staff to customer-facing roles amid the migration chaos, while forgoing £176.4m income for post-migration costs, such as customer compensation and waived fees and interest charges. Meanwhile, TSB Spanish rival, BBVA, reported €2.65bn ($3.07bn) profit in H1, attributed to its expansion into digital banking.