British lender TSB's Q1 profit rises on increased lending

New British lender TSB Banking Group's first-quarter profit more than doubled from the fourth quarter boosted by increased lending and a bigger share of the bank accounts market.

TSB, Britain's 7th biggest lender after being hived off from Lloyds Banking Group last June, said first-quarter new and switching bank accounts share increased to 7.9 percent, above its target of 6 percent.

TSB group profit before tax on a management basis jumped 153.3 percent to 34.2 million pounds for the three months ended March 31 from the fourth quarter of last year.

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TSB, which last month agreed to a takeover by Spain's Sabadell for $2.5 billion, said it had received over 700 million pounds of gross mortgage applications through its newly launched TSB mortgage broker service by the end of the quarter.

"TSB is starting to fire on all cylinders as we take on the big banks in our mission to bring more competition to U.K. banking," Chief Executive Paul Pester said in a statement.

Shares in TSB Banking Group have risen 2.6 percent since Sabadell made a takeover offer for the British lender.

TSB's larger rival, Santander's British arm, said this week it had hit its target of 4 million customers for its core banking product after adding 370,000 customers in the first quarter.

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