SEGMENTAL ANALYSIS RESTATEMEN

RNS Number : 9002Y

Lloyds TSB Group PLC

11 July 2008

 



                                                                                                                                                            11 July 2008

65/08

LLOYDS TSB segmental analysis restatement

As part of Lloyds TSB Group's transition to Basel II on 1 January 2008, the Group has taken the opportunity to update its capital and liquidity pricing methodology. The main difference in this approach is to allocate a greater share of certain funding costs, previously allocated to the Central group items segment, to individual divisions.

In addition, to enable meaningful year-on-year comparisons to be made, the Group intends to report its 2008 segmental results on a continuing businesses basis, excluding the impact of the businesses sold in 2007.

The attached appendix sets out the relevant segmental analyses for 2007 which have been restated to reflect these reporting changes, and which have no impact on the statutory results of the Group.

For further information:-

Investor Relations

Michael Oliver    [phone]

Director of Investor Relations

E-mail: [e-mail] 

Douglas Radcliffe    [phone]

Senior Manager, Investor 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. The 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, the policies and actions of governmental and regulatory authorities in the UK or jurisdictions outside the UK, including other European countries and the US, exposure to legal proceedings or complaints, changes in customer preferences, competition and other factors. Please refer to the latest Annual Report on Form 20-F filed with the US Securities and Exchange Commission for a discussion of such factors. The forward looking statements contained in this announcement are made as at the date of this announcement, and the Group undertakes no obligation to update any of its forward looking statements.

  APPENDIX

SUMMARISED SEGMENTAL ANALYSIS

2007	UK  Retail  Banking						Insurance  and  Investments		Wholesale  and  International   Banking		Central  group  items		Group  excluding  insurance  gross up		Insurance  gross up		Group
	£m							£m		£m		£m		£m		£m		£m
Net interest income	3,695							(106)		2,380		(368)		5,601		421		6,022
Other income	1,797							1,741		1,644		362		5,544		6,233		11,777
Total income	5,492							1,635		4,024		(6)		11,145		6,654		17,799
Insurance claims	-							(302)		-		-		(302)		(6,615)		(6,917)
Total income, net of insurance claims	5,492							1,333		4,024		(6)		10,843		39		10,882
Operating expenses	(2,548)							(611)		(2,152)		(6)		(5,317)		(13)		(5,330)
Trading surplus (deficit)	2,944							722		1,872		(12)		5,526		26		5,552
Impairment	(1,224)							-		(572)		-		(1,796)		-		(1,796)
Profit (loss) before tax	1,720							722		1,300		(12)		3,730		26		3,756
Volatility
- Insurance	-							(277)		-		-		(277)		-		(277)
- Policyholder interests	-							-		-		-		-		(222)		(222)
Profit on sale of businesses						-		272		385		-		657		-		657
Discontinued businesses						-		145		28		-		173		(11)		162
Settlement of overdraft claims						(76)		-		-		-		(76)		-		(76)
Profit (loss) before tax	1,644							862		1,713		(12)		4,207		(207)		4,000
Half-year to 30 June 2007	UK  Retail  Banking						Insurance  and  Investments		Wholesale  and  International   Banking		Central  group  items		Group  excluding  insurance  gross up		Insurance  gross up		Group
	£m							£m		£m		£m		£m		£m		£m
Net interest income	1,798							(56)		1,109		(154)		2,697		100		2,797
Other income	883							833		931		182		2,829		3,380		6,209
Total income	2,681							777		2,040		28		5,526		3,480		9,006
Insurance claims	-							(152)		-		-		(152)		(3,462)		(3,614)
Total income, net of insurance claims	2,681							625		2,040		28		5,374		18		5,392
Operating expenses	(1,261)							(307)		(1,041)		(3)		(2,612)		(6)		(2,618)
Trading surplus	1,420							318		999		25		2,762		12		2,774
Impairment	(627)							-		(210)		-		(837)		-		(837)
Profit before tax		793						318		789		25		1,925		12		1,937
Volatility
- Insurance	-							9		-		-		9		-		9
- Policyholder interests	-							-		-		-		-		(63)		(63)
Discontinued businesses	-							119		22		-		141		5		146
Settlement of overdraft claims					(36)			-		-		-		(36)		-		(36)
Profit (loss) before tax	757							446		811		25		2,039		(46)		1,993
Half-year to  31 December 2007			UK  Retail  Banking				Insurance  and  Investments		Wholesale  and  International   Banking		Central  group  items		Group  excluding  insurance  gross up		Insurance  gross up		Group
	£m							£m		£m		£m		£m		£m		£m
Net interest income	1,897							(50)		1,271		(214)		2,904		321		3,225
Other income	914							908		713		180		2,715		2,853		5,568
Total income	2,811							858		1,984		(34)		5,619		3,174		8,793
Insurance claims	-							(150)		-		-		(150)		(3,153)		(3,303)
Total income, net of insurance claims	2,811							708		1,984		(34)		5,469		21		5,490
Operating expenses	(1,287)							(304)		(1,111)		(3)		(2,705)		(7)		(2,712)
Trading surplus (deficit)	1,524							404		873		(37)		2,764		14		2,778
Impairment	(597)							-		(362)		-		(959)		-		(959)
Profit (loss) before tax	927							404		511		(37)		1,805		14		1,819
Volatility
- Insurance	-							(286)		-		-		(286)		-		(286)
- Policyholder interests	-							-		-		-		-		(159)		(159)
Profit on sale of businesses				-				272		385		-		657		-		657
Discontinued businesses				-				26		6		-		32		(16)		16
Settlement of overdraft claims					(40)			-		-		-		(40)		-		(40)
Profit (loss) before tax	887							416		902		(37)		2,168		(161)		2,007

 

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