New British bank TSB said it was picking up nearly one in ten of all new current accounts being opened in the UK, swelling its deposit base as competition intensifies for the country's biggest lenders.
The bank, hived off from Lloyds Banking Group, said it was ahead of a target to grow its share of UK personal current accounts to 6% in the next five years.
Lloyds was forced by European regulators to sell the 631 branches which now form TSB as a condition of receiving state aid during the financial crisis of 2007 to 2009.
The move created Britain's seventh-biggest high street bank with a 4.2% share of the personal current account market.
TSB, which listed in June, said today that its 9.7% share of new current account openings during the third quarter of 2014 put it on track to grow further.
The bank said the success of its recent advertising and media campaign had helped it grow customer deposits by £500m to £24.2 billion.
UK regulators are keen for new banks to challenge Britain's big four lenders - Lloyds, Royal Bank of Scotland, Barclays and HSBC, which provide three-quarters of personal current accounts.
Sweden's Handelsbanken and Britain's Metro Bank, two other rivals for the big four, reported a surge in lending to UK households and businesses this week.
TSB's chief executive Paul Pester said today that the bank was well-placed to compete with the bigger banks.
"We have everything we need in order to enable us to be a real competitor in the UK market and to reinforce our position as Britain’s challenger bank. The fact that one in ten customers to switch to us is a very good sign of that," he said.
TSB said its pretax profit rose to £33.1m, up 29% from the second quarter. Underlying profit rose by 32% to £41.6m.
However, net lending fell by £300m to £19.1 billion - a drop the bank said that was expected because it has not yet started to offer its mortgages through independent brokers.
The bank said it was on track to achieve its target of starting to sell mortgages through brokers in January 2015. It expects its mortgage book to start growing again in 2016.
TSB wants to increase its balance sheet by 40-50% over the next five years.
Lloyds sold a 38.5% stake in TSB through a stock market flotation of the business in June followed by the sale of a further 11.5% shareholding in September. It must sell the rest of the shares by the end of 2015.