TSB has reported a £107.4 million first half loss, with its botched IT migration in April at least partly to blame.

For the first six months of 2018, the British High Street bank recognised additional post-migration costs totalling £176.4 million.

This was made up of provisions for customer redress, associated remediation resource costs and fraud costs of £115.8 million, additional resource and advisory costs to support the remediation of systems and operating defects of £30.7 million, and foregone income of £29.9 million related to waived fees and charges as a result of service disruption.

The problems stemmed from a planned weekend move from a legacy Lloyds platform to a new system with parent company Banco Sabadell, which saw thousands of customers reporting missing payments, unexplained credits and views into the accounts of strangers.

Its results statement explained that the mobile app, online banking, telephone banking and branch service levels are now “much improved”, although several outstanding issues still persist.

TSB brought in a team from IBM to help solve problems in its systems, along with recruiting over 1,800 people and redeploying 700 staff to support customers who experienced problems during the service outage.

Around 26,000 customers switched their bank account away from TSB during the period, although the results noted that more than 20,000 people opened a new account or switched to TSB in the second quarter.

Chief executive Paul Pester admitted the bank’s financial performance was “significantly impacted” by the IT migration and subsequent service disruption.

“We’re making progress in resolving the service problems customers experienced following our IT migration, and we will continue to work tirelessly until we have put things right,” he said. “It has been a difficult time for customers and I am grateful to them for their patience – our priority in the second half of the year continues to be putting things right for our customers.”

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