$7.24 billion profits for Lloyds TSB

23 February 2007

UK bank Lloyds TSB, the fifth largest in the country, has announced annual profits of $7.24 billion.

The figures, which were in line with analysts' predictions, represent an 11 per cent rise for the bank, with its retail wing recording profits of $155 billion - up five per cent from 2005.

However, the strong performance for the bank's retail sector was tempered by a 20 per cent increase in the bank's impairment charge to $3 billion, as consumers struggled to pay back loans and credit card debts.

There are also fears that a two per cent cut in costs in the retail wing rather than actual growth in revenue was the chief reason for the improved performance.

Commenting on the figures in an ITN interview, Lloyds chief executive Eric Daniels said: "Our business model is based on building long lasting relationships with our customers, meeting more of their financial needs and thereby generating sustainable higher quality earnings growth."

Lloyds is the third British bank this week to announce its annual figures, with Barclays and Alliance & Leicester reporting profits of $14 billion and $1.14 billion respectively.

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