The Trustee Saving Bank movement was born from the desire to improve the opportunities of poor local communities. So, when the TSB Group was floated on the stock market in 1986, maintaining close personal links with the communities from which it had grown was a key element in going forward.
This resulted in the establishment of four charitable foundations – one each for England and Wales, Scotland, Northern Ireland and the Channel Islands. These foundations were endowed with 5% of the new Group’s share capital, which would entitle them to 1% of the pre tax profits averaged over three years – in lieu of their shareholder dividend.
When the TSB Group and Lloyds Bank merged in 1996 this legal structure survived unaltered. And the shareholding now amounts to about 1.4% of the Lloyds TSB Group share capital – with the Foundations still entitled to 1% of the pre tax profits.
The Foundations consider themselves to be guardians of the ethos of helping the ‘small saver’ – as established by the first Trustee Savings Banks back in 1810. And when it comes to grant-making this translates into:
- supporting local people
- supporting local communities
- a strong local presence.
