TSB Bank has revealed Paul Pester will be stepping down and leaving the company after seven years as chief executive.

Pester's departure follows the bank’s high-profile IT crisis earlier this year, which left hundreds of thousands of customers unable to access their bank accounts.

TSB admitted there is "still work to do" to achieve full stability for customers but said its systems and services are "much improved" since the bank’s IT migration earlier this year.

The bank said its board and Pester have "therefore agreed that this is the right time for Paul to step down and to appoint a new CEO for TSB".

Richard Meddings, who will take on the role of executive chairman, praised Lester's "enormous contribution" to the bank.

"Thanks to his passion and commitment, TSB is today one of the UK’s strongest challenger banks, serving over 5 million customers across the UK," he said.

"On behalf of the TSB Board, I want to thank Paul for everything he has achieved as CEO and pay tribute to the contribution he has made in bringing greater competition to the UK retail banking market."

Meddings said he and TSB's executive committee have three immediate priorities: to complete the work of putting things right for customers; to enable the bank to achieve full functionality – including the availability of all product services and launch of a leading Business Banking offer; and appointing a CEO for the next chapter of TSB.

Pester admitted that the last few months have been "challenging for everyone at TSB" but described the opportunity to lead the bank as "a privilege".

He said: "Five years ago, on 9 September 2013, we launched TSB back onto high streets across Britain. I vividly remember standing in our Baker Street branch, waiting to reveal TSB above the door. But it wasn't just a sign we were revealing – we were revealing a bank with a clear mission to bring more competition to UK banking and ultimately make banking better for all UK consumers.

"Thanks to the fantastic work and commitment of all TSB Partners, we have achieved real success in creating a bank which is truly consumer-focused, attracting customers from the UK’s established banks, and growing TSB's balance sheet from c.£18bn to c.£31bn today.

"The last few months have been challenging for everyone at TSB. 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."