AGM Statement

Lloyds TSB Group PLC
16 April 2003



46/03                                                         16 April 2003


LLOYDS TSB GROUP ANNUAL GENERAL MEETING STATEMENT


The following is an extract from the statements made by Maarten van den Bergh,
Chairman and Peter Ellwood, Group Chief Executive of Lloyds TSB Group at the
company's annual general meeting in Glasgow (16 April 2003).



"In the UK, from where the Group derives the vast majority of its earnings, the
slowdown in economic growth has partly been alleviated by the continued strength
of the housing market and high levels of consumer spending.  We expect levels of
growth in the housing market and consumer spending to fall during 2003.



Notwithstanding the slowdown in the UK and all major global economies, Lloyds
TSB continued to make progress in 2002, with strong market share performances in
many of its key product areas, and good growth in customer lending and deposits.
During the year the Group also achieved its target of an average 2.5 products
per customer, whilst maintaining its strict control on operational expenses.
Costs in 2002, excluding acquisitions and growth in operating lease
depreciation, were held flat.  Profit before tax for the year, however, fell by
18 per cent to £2,607 million, partly as a result of a significant increase in
provisions for bad and doubtful debts but also as a result of a number of
special items including additional provisions for redress to past purchasers of
certain pension and endowment products, and a negative investment variance of
£952 million in our insurance businesses, reflecting the weakness of equity
markets.



The business environment in which we operate is characterised by increasing
levels of competition, volatile equity markets and increasing government
regulation of the financial services industry.  Against this backdrop, Lloyds
TSB will continue to focus on its long standing principles of prudent and
sustainable revenue growth from the creation of value for customers, tight
management of its cost base and strong credit risk management.  With a clear
focus on these core strengths, and supported by a dedicated and resourceful team
of people, Lloyds TSB is well positioned for the challenges ahead.




                                        ..../more


LLOYDS TSB GROUP ANNUAL GENERAL MEETING STATEMENT/....2


In 2003, Lloyds TSB continues to operate in what is undoubtedly a challenging
economic environment, as global stock markets remain weak and the rate of growth
in consumer credit has started to slow.  The Group is, however, continuing to
increase its market share in a number of key product areas, particularly
mortgages and credit cards.  Costs remain under tight control and overall Group
asset quality remains satisfactory."



For further information:-



Investor Relations

Michael Oliver                                   [phone]

Director of Investor Relations

E-mail: [e-mail]



Ian Gordon                                       [phone]

Senior Manager, Investor Relations

E-mail: [e-mail]





Media

Terrence Collis                                  [phone]

Director of Group Corporate Communications

E-mail: [e-mail]



Mary Walsh                                        [phone]

Head of Media Relations

E-mail: [e-mail]





FORWARD LOOKING STATEMENTS

This announcement contains forward looking statements with respect to the
business, strategy and plans of the Lloyds TSB Group, its current goals and
expectations relating to its future financial condition and performance.  By
their nature, forward looking statements involve risk and uncertainty because
they relate to events and depend on circumstances that will occur in the future.
Lloyds TSB Group's actual future results may differ materially from the
results expressed or implied in these forward looking statements as a result of
a variety of factors, including UK domestic and global economic and business
conditions, risks concerning borrower credit quality, market related risks such
as interest rate risk and exchange rate risk in its banking business and equity
risk in its insurance businesses, changing demographic trends, unexpected
changes to regulation or regulatory actions, changes in customer preferences,
competition and other factors.  Please refer to the latest Annual Report on Form
20-F of Lloyds TSB Group filed with the US Securities and Exchange Commission
for a discussion of such factors.


                      This information is provided by RNS
            The company news service from the London Stock Exchange