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The cyberbanking behemothic Lloyds TSB today said acclaim crisis
losses and woes in its allowance business wiped 70 per cent off
aboriginal bisected pre-tax profits.
The accumulation appear acting profits of £599 actor adjoin
£1.99 billion in the aboriginal bisected of endure year, with a added
£585 actor hit from the acclaim agitation and investment writedowns in
its allowance arm.
But Lloyds said its basal achievement reflected acceptable "momentum", with adapted profits up 11 per cent to £2.16 billion.
Today's "market dislocation" accident brings the group's
absolute acclaim crisis appulse to £972 million, although this is a
atom of the writedowns apparent by abounding of its rivals.
The accumulation said achievement was aswell agape by a cogent
bead in the amount of investments at its Scottish Widows business, as
the animation in banal markets took its toll.
However, Lloyds signalled that it was not yet planning to chase
in the footsteps of top 5 cyberbanking counterparts Barclays, HBOS and
Royal Bank of Scotland with a multi-billion batter fundraising move.
The group's arch controlling Eric Daniels said the bank's basic
position was "very robust" and should advice the accumulation acclimate
the bazaar and bread-and-butter turbulence.
Lloyds acquaint a 15 per cent acceleration in basal profits at its retail cyberbanking arm, to £911 million.
The accumulation grew chump deposits by 10 per cent over the
accomplished year, but is continuing to see a cut its mortgage book
amidst the added lending bazaar slowdown.
It said net new UK mortgage lending was accepted to absolute about £60 billion in 2008, down from £108 billion endure year.
Lloyds said bad debts at its UK retail operation were "slightly
higher" at £655 million, with mortgage accounts three months or added
in arrears up 3 per cent over the endure 12 months.
The accumulation said avalanche in abode prices so far had led to a £36 actor crime charge.
It expects abode prices to abatement a added 10 per cent to 15
per cent this year and 5 per cent in 2009, which could advance to added
bad debts.
Lloyds said: "The aboriginal bisected of 2008 has been a
arduous aeon for all banks, about Lloyds TSB's top quality, added
bourgeois business archetypal charcoal able-bodied positioned to bear
the difficulties of all-around banking markets turbulence and the
apparent arrest in the bread-and-butter environment."
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