TSB has announced it is in the process of opening 30 new branches across the UK.
The bank, formerly owned by Lloyds Banking Group, has not given information of where the new branches will be situated but experts believe that it has targeted the English Midlands and the south-east. TSB is bucking the trend somewhat in the banking sector with over 300 of all branches closing their doors so far this year, BBC reports.
TSB's announcement comes a year to the day that it started trading as a separate entity following its split with Lloyds. The bank absorbed 631 branches which Lloyds was forced to sell under the terms of its bail-out by the government. Since then TSB has been performing well and the need for expansion highlights the positive moves it has been making in the past 12 months.
The bank floated on the stock exchange for the first time as an offshoot of Lloyds in June and saw a jump in shares. While it was previously a part of Lloyds its share price stood at 260p but once it moved out on its own it debuted at 300p before closing at 290p. Investors were seeing opportunity in the new company following its separation from Lloyds.
This trend has continued and TSB continues to makes strides against other major banks. According to the Campaign for Community Banking Services (CCBS), 331 bank branches in the UK has closed so far this year, compared to just 195 in the whole of 2013. Barclays, HSBC, Lloyds and RBS/Natwest have closed a combined 223 since January.
Speaking to the BBC, Derek French, the director of CCBS, explained that TSB needed to expand after taking on Lloyds branches in poorly located areas: "Most of them will be in London and the south-east, in areas where they haven't got a branch and they need to open one pretty quickly."
Find up to date information on the FTSE 100 and spread betting strategies at City Index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.