Latest IT failures at TSB plus Visa led to misery for numerous customers across Europe © PENNSYLVANIA

The particular IT debacle at TSB offers strained its relationship with proprietor Sabadell to such an extent that will members of the bank’ s management are considering whether it has a future included in the Spanish group, according to several individuals close to the companies.

In the middle of the row is the dominant function that Sabadell’ s in-house THIS provider Sabis played in the which usually left hundreds of thousands of customers unable to gain access to their bank accounts and piled stress on chief executive Paul Pester.

Mr Pester told MPs last month that the bank had been looking to “ insource” its THIS infrastructure from Sabis. Such a shift would sever TSB’ s major operational link with its owner plus make any future separation simpler, three people close to the bank mentioned.

“ If Sabadell sold, that would clearly be to get the best, ” said one.

In his letter, Mr Pester mentioned Sabadell’ s “ written attestations” about the readiness of its new THIS platform were “ instrumental” in order to TSB’ s decision to go forward with the migration of customer information.

The problems have left Mister Pester in a precarious position in the head of the bank, with the Treasury last month taking the unprecedented phase of calling for him to become replaced.

TSB leader Richard Meddings recently that the financial institution had only resolved around twenty nine per cent of the complaints it got received in the nine weeks because the problems began.

A single senior figure close to the situation mentioned: “ Pester’ s future weighs on progress with the compensation hard work. ”

The person stated that over the nine-week period the company acquired paid out £ 2m in payment to inconvenienced customers, and £ 12m to compensate people who were defrauded because of the system failure.

TSB is expected to release established figures on how much the problems possess cost it when it reports second-quarter results later this month.

Sabadell paid £ 1 ) 7bn to TSB in 2015, less than two years after it was unique out of Lloyds Banking Group being a condition of its crisis-era bailout.

It was previously seen as a probably consolidator in the UK’ s opposition bank space, but its recent troubles meant that it missed out on the opportunity to install a counterbid for Virgin Cash, which is now by rival CYBG. That deal will see the mixed group leapfrog TSB as the country’ s fifth-biggest lender.

Investment bankers in the City of Greater london have since begun speculating more than whether Sabadell would be willing or even able to keep hold of the business in the long run.

“ It generally needed an acquisition to make it eco friendly, ” one industry figure mentioned. “ They definitely cannot purchase anything at the moment”.

However , a person close to Sabadell recommended it would be reluctant to jettison the company, despite the high cost of the THIS failure. The 2015 acquisition was obviously a key part of the bank’ s objective of reducing reliance on the home market, a priority which is likely to happen to be reinforced by recent.

Last year the Barcelona-based bank from Catalonia after the region’ s competitive independence referendum.

TSB said: “ Our absolute concentrate is on fixing the remaining problems, and we are working together with Sabadell to do this. We have made a firm commitment that no customer will be left out of pocket as a result of the recent IT issues and no complaint will go unanswered. We are working hard to do this as fast as possible. ”

FINANCIAL TIMES