The chief executive of TSB has stepped down following major tech troubles at the bank.
Dr Paul Pester, who has been the lender’s boss over the past seven years, is to resign after TSB apologised for its most recent technical issues on Monday.
Monday saw disruption to the bank’s online services, leaving many customers unable to log in.
This was following the tech issues in April where customers were left without access to online banking services for several weeks.
The Financial Conduct Authority launched a formal investigation into the meltdown in June. With Andrew Bailey, the group’s chief executive making the decision “given the level of public interest”.
TSB said the IT meltdown in April had cost the group £176.4 million and pushed it to a half-year loss.
MPs called on Pester to resign following the IT issues, however, he responded by remaining in his post and saying: “I’m focused 100 percent on putting things right for our customers.”
“The last few months have been challenging for everyone at TSB,” said Pester.
“However, I want to thank all my colleagues across TSB for their dedication and commitment during this period and for their focus on putting things right for TSB customers.”
“It has been a privilege to lead TSB through its creation and first five years. I look forward to seeing the next stage of our bank’s history evolve.”
TSB chairman Richard Meddings will take on Pester’s role until a new chief executive has been appointed.
“Although there is more to do to achieve full stability for customers, the bank’s IT systems and services are much improved since the IT migration. Paul and the Board have therefore agreed that this is the right time to appoint a new CEO for TSB,” said Meddings.
TSB is owned by Banco Sabadell (BME: SAB). Shares in the group are trading at 1,34 (0848GMT)
