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 12 May 2008 15:52 BST

Lloyds TSB seen surviving credit crunch

Tuesday, 06 May 2008 09:18
Some (relatively) good news from Lloyds TSB
High street bank Lloyds TSB has announced substantially smaller damage from the credit crunch than its rivals, suffering a £387 million writedown.

The bank is also not heading to investors as other banks have down in recent weeks with rights issues.

Instead it is expecting to record double digit growth in the first quarter of 200, excluding the results of "the impact of the market dislocation".

Eric Daniels, Lloyds TSB group chief executive, said: "Despite the more challenging market conditions, the group remains firmly on track to deliver a good performance for the first half of 2008.

"Our strong liquidity and funding capability have ensured that the group has continued to raise wholesale funding at market leading rates.

"This gives the group a competitive advantage and has enabled our corporate and retail relationship banking businesses to achieve strong levels of business growth in the first quarter of the year, capturing market share in a number of key areas while improving product margins."

He added: "Our strategy and focus remains on continuing to build strong customer relationships, whilst improving the efficiency and effectiveness of our operations."

Over the last few weeks both Halifax Bank of Scotland (HBOS) and Royal Bank of Scotland (RBS) have both turned to shareholders to raise funds through rights issues.

However, both firms were forced to admit much higher writedowns, of £2.8 billion for HBOS and £2 billion for RBS, due to the credit crunch and the US subprime crisis.End of story

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