Interim Results - Part 3
Lloyds TSB Group PLC
27 July 2001
PART 3
Lloyds TSB Group plc
LLOYDS TSB GROUP - BUSINESS AS USUAL
Operating expenses (continued)
Number of employees (full-time equivalent)
Staff numbers increased by 2,778 to 80,318 in the first half of
the year. Within UK Retail Banking staff numbers increased by
2,438 as we continue planned improvements to customer service,
increased call centre capacity and a substantial increase in our
branch sales activities. In Wholesale Markets staff numbers
increased by 295.
Overall staff numbers are expected to reduce in the second half
of 2001 as we continue with the streamlining of back office
processing and other efficiency programmes.
30 June 31 December
2001 2000
UK Retail Banking* 47,126 44,688
Mortgages 3,361 3,407
Insurance and Investments 6,337 6,352
Wholesale Markets 8,738 8,443
International Banking 12,458 12,403
Other 2,298 2,247
Total number of employees
(full-time equivalent) 80,318 77,540
* Although the costs of distributing mortgages and insurance
through the Lloyds TSB network are allocated to the mortgage and
insurance businesses, the number of employees involved in these
activities in the network is included under UK Retail Banking.
Page 31 of 45
LLOYDS TSB GROUP - BUSINESS AS USUAL
CREDIT QUALITY
Charge for bad and doubtful debts
Half-year to Half-year to
30 June 31 December
2001 2000* 2000*
£m £m £m
Domestic:
UK Retail Banking 196 202 143
Mortgages 2 (5) (8)
Wholesale Markets 68 34 60
Total domestic 266 231 195
International Banking 57 34 81
Total charge 323 265 276
Specific provisions 327 264 283
General provisions (4) 1 (7)
Total charge 323 265 276
Charge as % of average lending % % %
(annualised):
Domestic 0.53 0.51 0.40
International 0.73 0.48 1.10
Total charge 0.55 0.50 0.49
* restated for the effect of FRS 18 (page 40, note 1)
The total charge for bad and doubtful debts increased to £323
million from £265 million. The domestic charge increased to
£266 million from £231 million, largely as a result of the
acquisition of Chartered Trust. In the second half of 2000, UK
Retail Banking had a one-off benefit of £42 million following
the full centralisation of our arrears processing. Provisions
overseas increased to £57 million from £34 million, but were
lower than in the second half of last year.
Non-performing loans were £1,205 million compared with
£1,119 million in June 2000 and £1,259 million in December 2000
and represented 1.0 per cent of total lending, compared with
1.0 per cent in June 2000 and 1.1 per cent in December 2000.
Our lending portfolio remains heavily influenced by our mortgage
business and we are well positioned for any economic slowdown.
Page 32 of 45
LLOYDS TSB GROUP - BUSINESS AS USUAL
Movements in provisions for bad and doubtful debts
Half-year to Half-year to Half-year to
30 June 2001 30 June 2000* 31 December
2000*
Specific General Specific General Specific General
£m £m £m £m £m £m
At beginning of
period 1,069 357 1,053 361 1,064 362
Exchange and
other
adjustments 18 1 15 - (11) (2)
Adjustment on
acquisition - - - - 45 4
Advances
written off (399) - (346) - (399) -
Recoveries of
advances
written of in
previous years 101 - 78 - 87 -
Charge
(release) to
profit and loss
account:
New and
additional
provisions 610 4 470 7 623 -
Releases and
recoveries (283) (8) (206) (6) (340) (7)
327 (4) 264 1 283 (7)
At end of
period 1,116 354 1,064 362 1,069 357
1,470 1,426 1,426
Closing
provisions as %
of lending
(excluding
unapplied
interest)
Specific:
Domestic 817 (0.8%) 762 (0.8%) 774 (0.8%)
International 299 (1.8%) 302 (2.1%) 295 (2.0%)
1,116 (0.9%) 1,064 (1.0%) 1,069 (0.9%)
General 354 (0.3%) 362 (0.3%) 357 (0.3%)
Total 1,470 (1.2%) 1,426 (1.3%) 1,426 (1.2%)
* restated for the effect of FRS 18 (page 40, note 1)
Following the implementation of FRS 18 (page 40, note 1)
uncollateralised bonds previously included in loans and advances
have now been reclassified as debt securities. This reduces
significantly the level of provisions held. 2000 comparatives
have been restated accordingly.
At the end of June 2001 provisions for bad and doubtful debts
totalled £1,470 million. This represented 1.2 per cent of total
lending. The level of specific provisions increased to £1,116
million. Non-performing lending decreased to £1,205 million
from £1,259 million in December 2000. At the end of the half-
year, specific provisions represented over 90 per cent of non-
performing loans.
Page 33 of 45
LLOYDS TSB GROUP - STATUTORY FORMAT INFORMATION
CONSOLIDATED PROFIT AND LOSS ACCOUNT (Unaudited)
Half-year to Half-year to
30 June 31 December
2001 2000* 2000*
£m £m £m
Interest receivable:
Interest receivable and
similar income arising from
debt securities 202 240 203
Other interest receivable
and similar income 5,647 5,116 5,495
Interest payable 3,467 3,045 3,422
Net interest income 2,382 2,311 2,276
Other income
Fees and commissions receivable 1,469 1,348 1,420
Fees and commissions payable (271) (223) (256)
Dealing profits (before expenses) 106 100 98
Income from long-term assurance
business:
Income before pension provision 98 371 344
Pension provision - - (100)
General insurance premium income 206 200 199
Other operating income 392 188 248
2,000 1,984 1,953
Total income 4,382 4,295 4,229
Operating expenses
Administrative expenses 1,801 1,642 1,736
Exceptional restructuring costs 54 74 114
Total administrative expenses 1,855 1,716 1,850
Depreciation 259 154 210
Amortisation of goodwill 19 6 16
Depreciation and amortisation 278 160 226
Total operating expenses 2,133 1,876 2,076
Trading surplus 2,249 2,419 2,153
General insurance claims 77 71 71
Provisions for bad and doubtful
debts
Specific 327 264 283
General (4) 1 (7)
323 265 276
Amounts written off fixed
asset investments 6 22 10
Operating profit 1,843 2,061 1,796
Income from associated
undertakings and joint
ventures (5) 3 -
Profit on ordinary activities
before tax 1,838 2,064 1,796
Tax on profit on ordinary
activities 513 576 529
Profit on ordinary activities
after tax 1,325 1,488 1,267
Minority interests
- equity 7 6 7
- non-equity 26 16 20
Profit for the period
attributable to shareholders 1,292 1,466 1,240
Dividends 566 511 1,172
Retained profit 726 955 68
Earnings per share 23.4p 26.8p 22.5p
Diluted earnings per share 23.2p 26.5p 22.3p
* restated for the effect of FRS 18 (page 40, note 1)
Page 34 of 45
LLOYDS TSB GROUP - STATUTORY FORMAT INFORMATION
CONSOLIDATED BALANCE SHEET (Unaudited)
30 June 30 June 31 December
2001 2000* 2000*
Assets £m £m £m
Cash and balances at
central banks 688 729 1,027
Items in course of
collection from banks 1,866 2,021 1,533
Treasury bills and other
eligible bills 3,303 1,876 1,709
Loans and advances to banks 19,320 16,265 15,290
Loans and advances to
customers 119,926 106,573 114,543
Non-returnable finance (230) - (400)
119,696 106,573 114,143
Debt securities 17,749 15,607 14,605
Equity shares 240 201 247
Interests in associated
undertakings and joint
ventures 8 4 9
Intangible assets 2,573 2,082 2,599
Tangible fixed assets 3,125 2,155 3,037
Own shares 50 29 28
Other assets 3,780 3,125 3,567
Prepayments and accrued
income 3,051 3,271 2,965
Long-term assurance business
attributable to shareholders 6,591 6,607 6,549
182,040 160,545 167,308
Long-term assurance assets
attributable to policyholders 47,536 49,910 51,085
Total assets 229,576 210,455 218,393
Liabilities
Deposits by banks 26,033 13,385 16,735
Customer accounts 104,557 97,001 100,738
Items in course of
transmission to banks 403 547 420
Debt securities in issue 19,587 15,896 17,899
Other liabilities 6,129 10,964 6,980
Accruals and deferred income 3,824 3,302 4,325
Provisions for liabilities
and charges:
Deferred tax 1,682 1,655 1,683
Other provisions for
liabilities and charges 414 458 442
Subordinated liabilities:
Undated loan capital 3,432 3,389 3,391
Dated loan capital 4,113 3,456 4,119
Minority interests:
Equity 33 33 37
Non-equity 948 516 515
981 549 552
Called-up share capital 1,409 1,395 1,396
Share premium account 906 546 595
Merger reserve 343 343 343
Profit and loss account 8,227 7,659 7,690
Shareholders' funds (equity) 10,885 9,943 10,024
182,040 160,545 167,308
Long-term assurance
liabilities to
policyholders 47,536 49,910 51,085
Total liabilities 229,576 210,455 218,393
* restated for the effect of FRS 18 (page 40, note 1)
Page 35 of 45
LLOYDS TSB GROUP - STATUTORY FORMAT INFORMATION
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (Unaudited)
Half-year to Half-year to
30 June 31 December
2001 2000 2000
£m £m £m
Profit attributable to
shareholders 1,292 1,466 1,240
Currency translation
differences on foreign
currency net investments (37) 30 (41)
Total recognised gains
and losses relating to
the period 1,255 1,496 1,199
Prior period adjustment 248 -
(page 40, note 1)
Prior period adjustment
in respect of
the adoption of FRS 15 - (112)
Total gains and losses
recognised during the period 1,503 1,384
HISTORICAL COST PROFITS AND LOSSES
There was no material difference between the results as reported
and the results that would have been reported on an unmodified
historical cost basis. Accordingly, no note of historical cost
profits and losses has been included.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Half-year to Half-year to
30 June 31 December
2001 2000 2000
£m £m £m
Profit attributable to
shareholders 1,292 1,466 1,240
Dividends (566) (511) (1,172)
Retained profit 726 955 68
Currency translation differences
on foreign currency net
investments (37) 30 (41)
Issue of shares 172 40 34
Goodwill written back on sale
and closure of businesses - 89 20
Net increase in shareholders'
funds 861 1,114 81
Shareholders' funds at
beginning of period 10,024 8,581 9,943
Prior period adjustment - 248 -
(page 40, note 1)
Shareholders' funds at end
of period 10,885 9,943 10,024
Page 36 of 45
LLOYDS TSB GROUP - STATUTORY FORMAT INFORMATION
CONSOLIDATED CASH FLOW STATEMENT (Unaudited)
Half-year to Half-year to
30 June 31 December
2001 2000* 2000*
£m £m £m
Net cash inflow from
operating activities 5,261 4,889 2,585
activities
Dividends received from
associated undertakings 2 2 -
Returns on investments and
servicing of finance:
Dividends paid to equity
minority interests (11) (6) (6)
Payments made to non-equity
minority interests (26) (16) (20)
Interest paid on subordinated
liabilities (loan captial) (256) (210) (232)
Interest element of finance
lease rental payments (1) - (1)
Net cash outflow from returns
on investments and
servicing of finance (294) (232) (259)
Taxation:
UK corporation tax (213) (194) (529)
Overseas tax (80) (63) (78)
Total taxation (293) (257) (607)
Capital expenditure and
financial investment:
Additions to fixed asset
investments (21,327)(12,812) (10,752)
Disposals of fixed asset
investments 19,465 12,485 12,365
Additions to tangible
fixed assets (380) (306) (700)
Disposals of tangible
fixed assets 53 26 52
Net cash (outflow) inflow from
capital expenditure
and financial investment (2,189) (607) 965
Acquisitions and disposals:
Acquisition of group
undertakings (117) (19) (5,091)
Disposal of group undertakings
and businesses - 80 3
Net cash (outflow) inflow from
acquisitions and disposals (117) 61 (5,088)
Equity dividends paid (1,172) (1,011) (511)
Net cash inflow (outflow)
before financing 1,198 2,845 (2,915)
Financing:
Issue of subordinated
liabilities (loan capital) 29 278 674
Issue of perpetual capital
securities by subsidiary
undertakings 456 509 -
Issue of ordinary share
capital net of £152 million
(2000: first half £105m;
second half £19m)
contribution to the QUEST 172 40 34
Repayments of subordinated
liabilities (loan capital) (26) (51) (4)
Capital element of finance
lease rental payments (16) (1) (3)
Net cash inflow from financing 615 775 701
Increase (decrease) in cash 1,813 3,620 (2,214)
* restated for the effect of FRS 18 (page 40, note 1)
Page 37 of 45
LLOYDS TSB GROUP - STATUTORY FORMAT INFORMATION
CAPITAL RATIOS
Risk asset ratios
30 June 31 December
2001 2000*
£m £m
Capital
Tier 1 (page 44, note 11) 9,243 7,949
Tier 2 7,704 7,722
16,947 15,671
Supervisory deductions (6,928) (6,862)
Total capital 10,019 8,809
£bn £bn
Risk-weighted assets
UK Retail Banking 18.1 17.4
Mortgages 27.6 26.6
Insurance and Investments 0.2 0.2
UK Retail Financial Services 45.9 44.2
Wholesale Markets 41.9 36.5
International Banking 13.4 12.4
Central group items 1.1 0.9
Total risk-weighted assets 102.3 94.0
Risk asset ratios
Total capital 9.8% 9.4%
Tier 1 9.0% 8.5%
Half-year to Half-year to
30 June 31 December
2001 2000*
£m £m
Post-tax return on average
risk-weighted assets 2.71% 2.76%
* restated for the effect of FRS 18 (page 40, note 1)
At the end of June 2001 the risk asset ratios were 9.8 per cent
for total capital and 9.0 per cent for tier 1 capital. The
9.0 per cent tier 1 capital ratio appears higher than would
perhaps be expected for the Group. This reflects the higher
level of supervisory deductions resulting from Lloyds TSB's
significant investment in life assurance.
In the first half of 2001, total capital for regulatory purposes
increased by £1,210 million to £10,019 million. Tier 1 capital
increased by £1,294 million, mainly from retained profits and
the issue of tax efficient capital instruments. Tier 2 capital
decreased by £18 million and supervisory deductions increased by
£66 million.
Risk-weighted assets increased to £102 billion and the post-tax
return on average risk-weighted assets, a key measure of
efficient use of capital, was 2.71 per cent.
Page 38 of 45
LLOYDS TSB GROUP - STATUTORY FORMAT INFORMATION
BALANCE SHEET INFORMATION
Total assets
Total assets increased by £11 billion, or 5 per cent, from the
end of 2000. Over the last 12 months, loans and advances to
customers increased by £13 billion, or 12 per cent, to £120
billion.
30 June 30 June 31 December
2001 2000* 2000*
Deposits - customer accounts £m £m £m
Sterling:
Non-interest bearing current
accounts 5,774 5,860 5,504
Interest bearing current
accounts 19,449 18,368 18,221
Savings and investment
accounts 47,844 43,376 45,972
Other customer deposits 16,119 15,621 16,682
Total sterling 89,186 83,225 86,379
Currency 15,371 13,776 14,359
Total deposits
- customer accounts 104,557 97,001 100,738
Loans and advances to
customers
Domestic:
Agriculture, forestry and
fishing 2,097 2,161 2,026
Manufacturing 3,444 3,395 3,357
Construction 1,257 943 1,016
Transport, distribution and
hotels 4,465 3,804 3,836
Property companies 2,680 2,183 2,470
Financial, business and
other services 9,962 7,698 9,295
Personal:mortgages 54,477 50,153 52,659
:other 11,908 10,311 11,138
Lease financing 7,681 8,020 8,070
Hire purchase 5,326 3,535 5,172
Other 2,405 1,803 2,237
Total domestic 105,702 94,006 101,276
International:
Latin America 2,410 1,863 2,222
New Zealand 7,730 7,437 7,368
Rest of the world 5,399 4,776 4,787
Total international 15,539 14,076 14,377
121,241 108,082 115,653
Provisions for bad and
doubtful debts** (1,465) (1,417) (1,420)
Interest held in suspense** (80) (92) (90)
Total loans and advances to
customers 119,696 106,573 114,143
* restated for the effect of FRS 18 (page 40, note 1)
** figures exclude provisions and interest held in suspense
relating to loans and advances to banks
Page 39 of 45
LLOYDS TSB GROUP
NOTES
1. Accounting policies and presentation
During the first half of the year, the Group implemented the
requirements of Financial Reporting Standard 18 'Accounting
Policies'. On implementation of this new standard, the Group
has taken the opportunity to review the appropriateness of
accounting policies in a number of areas and the following
change has been made as a result. Debt securities acquired
in exchange for advances to countries experiencing payment
difficulties which are not (nor due to be) collateralised by
US Treasury securities ('uncollateralised bonds') were, like
the original debt, previously included in loans and advances,
at their written down value at date of exchange as adjusted
for any subsequent movements in bad debt provisions. This
treatment is no longer considered to be the most appropriate
and the uncollateralised bonds have been reclassified as debt
securities where they are carried at an amount based on the
market value at the date of the original exchange as adjusted
for the amortisation of the discount on acquisition. A prior
year adjustment, increasing reserves by £248 million, has
been made to reflect the revised policy.
The effect of this change on the profit and loss account for
the half-year ended 30 June 2001 has been to increase other
operating income by £39 million, increase the charge for bad
and doubtful debts by £64 million, and to reduce profit
before tax by £25 million. Loans and advances have been
reduced by £323 million, debt securities have increased by
£731 million and shareholders' funds have increased by
£286 million. 2000 comparatives have been restated. In the
first half of 2000, other operating income increased by £32
million, amounts written off fixed asset investments
increased by £18 million and the charge for bad and doubtful
debts increased by £18 million. Profit before tax has been
reduced, therefore, by £4 million. In the second half of
2000, other operating income increased by £26 million and the
provisions charge increased by £48 million, causing a
reduction in pre-tax profits of £22 million.
2. Economic profit
In pursuit of our aim to maximise shareholder value, we use a
system of value based management as a framework to identify
and measure value in order to help us to make better business
decisions. Accounting profit is of limited use as a measure
of value creation and performance as it ignores the cost of
the equity capital that has to be invested to generate the
profit. We choose economic profit as a measure of
performance because it captures both growth in investment and
return. Economic profit represents the difference between
the earnings on the equity invested in a business and the
cost of the equity. Our calculation of economic profit uses
average equity for the half-year and is based on a cost of
equity of 9 per cent (2000: 9 per cent).
Economic profit instils a rigorous financial discipline in
determining investment decisions throughout the Group. It
enables us to evaluate alternative strategies objectively,
with a clear understanding of the value created by each
strategy, and then to select the strategy which creates the
greatest value.
Page 40 of 45
LLOYDS TSB GROUP
3. Earnings per share
Half-year to Half-year to
30 June 31 December
2001 2000* 2000*
Business as usual
Profit attributable to
shareholders £1,600m £1,455m £1,497m
Weighted average number
of ordinary shares in issue 5,517m 5,476m 5,499m
Earnings per share 29.0p 26.6p 27.2p
Basic - statutory
Profit attributable to
shareholders £1,292m £1,466m £1,240m
Weighted average number
of ordinary shares in issue 5,517m 5,476m 5,499m
Earnings per share 23.4p 26.8p 22.5p
Fully diluted
Profit attributable to
shareholders £1,292m £1,466m £1,240m
Weighted average number
of ordinary shares in issue 5,574m 5,536m 5,554m
Earnings per share 23.2p 26.5p 22.3p
* restated for the effect of FRS 18 (page 40, note 1)
4. Tax
The effective rate of tax was 28 per cent (2000 first half:
28 per cent). The lower effective rate of tax, compared with
the standard tax rate of 30 per cent, is largely due to tax
relief on payments to the QUEST to satisfy Save As You Earn
options, and gains on disposals of investments and properties
sheltered by capital losses.
5. Short-term fluctuations in investment returns
In accordance with generally accepted accounting practice in
the UK, it is the Group's accounting policy to carry the
investments comprising the reserves held by its life
companies at market value. In the past, this has not had a
significant impact upon the Group's results because of the
limited reserves necessary to support the predominantly unit
linked business of Lloyds TSB Life Assurance and Abbey Life.
However, the reserves held to support the with-profits
business of Scottish Widows are substantial and changes in
market values will result in significant volatility in the
Group's embedded value earnings. In addition, the movement
in the embedded value in the balance sheet includes
experience variances related to movements in the market value
of the funds. Consequently, in order to provide a clearer
representation of the underlying performance, the results of
the Life and Pensions business have been analysed between an
operating profit, including investment earnings calculated
using longer-term investment rates of return, and a profit
before tax, separately identifying the effect of short-term
fluctuations in investment returns. This approach is already
established practice amongst listed insurance companies in
the UK.
Page 41 of 45
LLOYDS TSB GROUP
5. Short-term fluctuations in investment returns (continued)
The longer-term rates of return for the period are consistent
with those used by the Group in the calculation of the
embedded value at the beginning of the period, which were
8.00 per cent for equities and 5.25 per cent for gilts.
These are based upon a long-term view of economic activity
and are therefore not adjusted for market movements which are
considered to be short term. This approach is considered the
most appropriate given the long-term nature of the portfolio
of products and achieves consistency in reporting from one
period to the next.
Lloyds TSB General Insurance also holds investments to
support its underwriting business; these are carried at
market value and gains and losses included within dealing
profits. Consistent with the approach adopted for the Life
and Pensions business, an operating profit for the general
insurance business has been calculated including investment
earnings normalised using the same long-term rates of return.
In the first half of 2001 the FTSE All-Share index fell by
8.6 per cent and this created adverse short-term fluctuations
in investment returns totalling £329 million. These adverse
short-term fluctuations should not represent a permanent
impairment to the value of the Group's reserves which
fluctuate as stockmarket values fluctuate.
6. Changes in the economic assumptions applied to our long-term
assurance business
The shareholders' interest in the long-term assurance
business ('embedded value') is calculated on the basis of a
series of economic and actuarial assumptions. Following the
acquisition of the business of Scottish Widows, a detailed
review of the economic assumptions used in the embedded value
calculation was carried out, to ensure that these assumptions
remained appropriate for the enlarged Life and Pensions
business in the context of forecast long-term economic
trends. As a result of this review certain assumptions were
amended, including the risk-adjusted discount rate which was
reduced from 10 per cent to 8.5 per cent. The revised
assumptions, which were used with effect from 1 January 2000
for Abbey Life and the bancassurance operation of Lloyds TSB
Life, resulted in a one-off credit to the profit and loss
account of £127 million for the half-year to 30 June 2000.
The same assumptions were used for the Scottish Widows
business from the date of acquisition.
7. Stakeholder pensions
Stakeholder pensions were introduced from 6 April 2001, with
charges on these new products being limited by Government to
a maximum of one per cent per annum. In order not to
disadvantage existing pensions customers, charges were
reduced on our existing book. This had the effect of
reducing future cash flows in the Group's embedded value
calculation and a one-off charge of £80 million was therefore
made to the profit and loss account in the second half of
2000.
Page 42 of 45
LLOYDS TSB GROUP
8. Exceptional restructuring costs
Exceptional restructuring costs totalling £54 million were
charged to the 2001 interim profit and loss account. The
majority of these costs related to an efficiency programme
announced in February 2000.
The main features of the efficiency programme, which is
primarily focused on non-customer facing activities, are: -
- the centralisation of computer operations
- the further consolidation of all our large scale processing
operations and support functions including the complete
removal of all back office processing from branches
- the further streamlining of the branch network, combined
with the expansion of lower cost delivery channels such as
telephone banking and internet operations
- the further reduction of our purchasing costs
- the rationalisation of non-personal banking activities,
through the progressive sharing and consolidation of
operational functions.
During the first half of 2001, the restructuring costs
relating to the efficiency programme comprised mainly
severance, consultancy costs, and the write-down of
equipment. During 2001 we expect restructuring costs
relating to the efficiency programme to be approximately
£200 million, reducing to approximately £130 million in 2002
and £60 million in 2003. Annualised cost benefits resulting
from these investments are expected to total approximately
£75 million in 2001 rising to £410 million in 2004. Overall,
the individual programmes associated with these costs are
expected to achieve average payback within 3 years.
9. Abbey National offer costs
These relate to costs incurred in connection with the
proposed acquisition of Abbey National plc prior to the
announcement by the Secretary of State for Trade and Industry
that Lloyds TSB would not be permitted to proceed with an
offer.
Page 43 of 45
LLOYDS TSB GROUP
10. Dividend
The interim dividend for 2001 will be 10.2p per share (2000:
9.3p), an increase of 10 per cent.
Shareholders who have already joined the dividend
reinvestment plan will automatically receive shares instead
of the cash dividend. Shareholders who have not joined the
plan and wish to do so may obtain an application form from
Lloyds TSB Registrars, The Causeway, Worthing, West Sussex,
BN99 6DA (telephone 0870 6003990). Key dates for the payment
of the interim dividend are:
Shares quoted ex-dividend.
Shares purchased before this date
qualify for the dividend 8 August
Record date. Shareholders on
the register on this date
are entitled to the dividend 10 August
Final date for joining or leaving
the dividend reinvestment plan 12 September
Interim dividend paid 10 October
11.Review of interim profits
The interim profits in 2001 were reviewed and reported upon,
without qualification, by the Company's auditors
PricewaterhouseCoopers, in accordance with the conditions set
out in the Financial Services Authority's Guide to Banking
Supervisory Policy (chapter CA Definition of Capital, section
5) thereby enabling the retained profit to be included in
tier 1 capital shown on page 38.
12. Other information
The results for the half-year ended 30 June 2001 were
approved by the directors on 26 July 2001.
Statutory accounts for the year ended 31 December 2000 were
delivered to the registrar of companies. The auditors'
report on these accounts was unqualified and did not include
a statement under sections 237(2) (accounting records or
returns inadequate or accounts not agreeing with records and
returns) or 237(3) (failure to obtain necessary information
and explanations) of the Companies Act 1985.
Results for the year ending 31 December 2001 will be
announced on 15 February 2002.
Page 44 of 45
LLOYDS TSB GROUP
CONTACTS
For further information please contact:-
Kent Atkinson
Group Finance Director
Lloyds TSB Group plc
020 7356 1436
E-mail: kent.atkinson@ltsb-finance.co.uk
Michael Oliver
Director of Investor Relations
Lloyds TSB Group plc
020 7356 2167
E-mail: michael.oliver@ltsb-finance.co.uk
Terrence Collis
Director of Group Corporate Communications
Lloyds TSB Group plc
020 7356 2078
E-mail: terrence.collis@lloydstsb.co.uk
Copies of this news release may be obtained from Investor
Relations, Lloyds TSB Group plc, 71 Lombard Street, London EC3P
3BS (telephone 020 7356 1273). A summary will appear as an
advertisement in The Times on 28 July 2001.
Information about the Group's role in the community and copies
of the Group's code of business conduct and its environmental
report may be obtained by writing to Public Affairs, Lloyds TSB
Group plc, 71 Lombard Street, London EC3P 3BS.
The full news release can also be found on the internet at
www.lloydstsb.com.
Page 45 of 45
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