Disposal

Lloyds TSB Group PLC
23 October 2003


157/03                                   23 October 2003


LLOYDS TSB GROUP ANNOUNCES SALE OF THE NATIONAL BANK OF

NEW ZEALAND

Lloyds TSB Group has agreed the sale of its subsidiary, NBNZ Holdings Limited
("NBNZ"),. comprising the Group's New Zealand banking and insurance operations,
to Australia and New Zealand Banking Group Limited for the equivalent of £2.25
billion. This consists of a pre-close dividend from NBNZ equivalent to
approximately £200 million and a cash consideration equivalent to some £2.05
billion. The net asset value at 30 June 2003 of the businesses sold, excluding
goodwill, was some £930 million. NBNZ contributed £149 million to Group
attributable profit in 2002.

Subject to completion, which is expected in early December 2003, an estimated
profit after tax of some £1.1 billion, based on NBNZ net assets at 30 June 2003,
will be recognised in the profit and loss account of Lloyds TSB Group for the
year ending 31 December 2003. This is after writing off goodwill of
approximately £200 million, £20 million of which has previously been charged to
reserves, and disposal costs. The Group's reserves will increase by
approximately £1.1 billion. NBNZ's risk-weighted assets as at 30 June 2003 were
£10.1 billion.

Upon completion, the Board will consider its options for the application of the
sale proceeds, which include supporting business growth, some strengthening of
capital ratios, and other means of enhancing shareholder value, including the
purchase of Group shares.

Eric Daniels, Lloyds TSB Group Chief Executive, said:

"Having conducted a strategic review of NBNZ and its prospects, we have
concluded that a sale of the business at this time is in the best interest of
the Group. The sale of NBNZ continues the process of managing the Group's
business portfolio to focus on our core franchise."





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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.




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