Lloyds TSB has said that it is set to announce “satisfactory” results for the first six months of the year despite a noting an easing in the consumer credit market and continued scepticism over share investment.
The UK’s fifth largest bank, which has sold foreign businesses such as the National Bank of New Zealand to focus on domestic operations, said that it was making “good progress” with the rejig.
Eric Daniels, the Lloyds TSB chief executive, said: “We remain well positioned to deliver our planned improved performance in the second half of 2004 and beyond.”
However, the bank, while stating that it had at least maintained market share in its core consumer credit markets in the first half of 2004, noted “some slowdown” in demand.
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The cost of winning custom had led to “some expected margin erosion”, with the group’s net interest margin slipping to 2.97 per cent from 3.03 per cent in the last six months of 2003.
Lloyds also noted a fall-off to £21.9 million, from £33.5 million, in sales of unit trusts at its Scottish Widows business.
“The market for regular premium equity-based savings products continues to be subdued,” the bank said.
Scottish Widows’ sales of pension products remained flat at £136.5 million.
In a separate statement, Lloyds announced the departure of Sir Tom McKillop, the AstraZeneca boss, as a non-executive director after six years.
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The move is in line with Higgs code recommendations that non-executive directors who serve no more than two three-year terms should not be deemed independent board members. However, it represents Lloyds third directorial departure this year, after the loss of Philip Hampton as finance director in January and, in April, of Steve Targett, Lloyds’ director of wholesale and international banking.
Today’s figures received a tepid welcome in the City, where Merrill Lynch saying it did not “detect any tangible signs of turnaround as yet” at Lloyds.
Lloyds TSB shares stood 6.5p lower at 430p in afternoon trade.