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Introduction

Building long-term relationships

Lloyds TSB is a leading UK based financial services group
providing a wide range of banking and financial services,
primarily in the UK, to personal and corporate customers.

For more information see Group at a glance

UK Retail Banking

UK Retail Banking provides a wide range of banking
and financial services through our diversified, proprietary
distribution network and highly recognised and well-regarded
brands (Lloyds TSB, Cheltenham & Gloucester and
Scottish Widows) to some 16 million personal customers
through over 2,000 branches across the UK.

Find out more about UK Retail Banking

Insurance and Investments

Insurance and Investments offers life assurance,
pensions and investment products, general insurance
and fund management services. It includes brands such
as Scottish Widows. Lloyds TSB General Insurance is
the leading distributor of home insurance in Britain.

Find out more about Insurance and Investments

Wholesale and International Banking

Our businesses within the Wholesale and International
Banking arena cover a broad scope, serving thousands of
customers, ranging from start-ups and small enterprises to
large organisations and global corporations.

Find out more about Wholesale and International Banking

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2007 highlights

Strong financial performance
  • Statutory earnings per share increased by 17 per cent to 58.3p.
  • Economic profit increased by 21 per cent.
  • Statutory profit before tax was 6 per cent lower at £4,000 million, largely reflecting adverse policyholder interests volitility.

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Strong underlying profit momentum
  • Profit before tax up 6 per cent to £3,919 million notwithstanding impact of global financial markets turbulence.
  • Excluding the impact of £280 million market dislocation, profit before tax increased by 13 per cent to £4,199 million.

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High returns maintained
  • Return on equity of 25.2 per cent.
  • Improved return on risk-weighted assets.
  • Return on Embedded Value increased to 9.9 per cent.

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Good income growth
  • Income growth of 5 per cent, reflecting the strength and resilience of the Group’s revenue base.
  • Excluding the impact of market dislocation and insurance grossing, income increased by 6 per cent.

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Excellent cost management
  • Cost growth of only 1 per cent, delivering wide positive jaws.
  • Cost:income ratio improved by 1.8 percentage points to 49.0 per cent.
  • Groupwide productivity programme exceeded 2007 expectations, and remains on track to deliver benefits of £250 million in 2008.

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Satisfactory credit quality
  • Retail impairment charge lower than in 2006.
  • Based on current trends, we do not expect a significant change in the retail impairment charge in the first half of 2008, compared to the first half of 2007.
  • Corporate asset quality remains good.

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Strong liquidity and funding position maintained...

...throughout the recent global financial markets turbulence.

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Excellent capital management
  • Robust capital ratios maintained.
  • Satisfactory transition to Basel II, with tier 1 capital ratio increasing to 9.5 per cent.
  • Over £3.6 billion of capital repatriated from Scottish Widows over the last 3 years.

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Summary of Group results

Image Graph of Profit before tax

† Excluding volatility, profit on sale of businesses, the settlement of overdraft claims in 2007, the pension schemes related credit in 2006, and customer redress provisions and the strengthening of reserves for mortality in 2005.

Image Graph of Profit before tax

† Excluding volatility, profit on sale of businesses, the settlement of overdraft claims in 2007, the pension schemes related credit in 2006, and customer redress provisions and the strengthening of reserves for mortality in 2005.

Image Graph of Profit before tax

† Excluding volatility, profit on sale of businesses, the settlement of overdraft claims in 2007, the pension schemes related credit in 2006, and customer redress provisions and the strengthening of reserves for mortality in 2005.

See Summary of Group results

Quick links

Access key information from the Lloyds TSB Annual Report and Accounts 2007:

Presentation of information and forward looking statements

Read the Presentation of information and forward looking statements for the Lloyds TSB Annual Report and Accounts 2007:

Contact us

Lloyds TSB‚
25 Gresham Street‚
London‚
EC2V 7HN

Email: investor.relations@ltsb.com