You are here: Home - Saving & Banking - News -

Lloyds TSB notches up £4.25bn profit in 2006

Written by:

Lloyds TSB, the fifth largest bank in the UK, has announced full-year, pre-tax profits of £4.25bn, up 11% from 2005.

The amount made up by retail banking – that is, the provision of UK current accounts and other public banking services to its customers – was £1.55bn, more than 5% higher than the previous year.

However, set against the increased profit is a jump in the provision for bad debt, up 20% to £1.56bn.

Lloyds warned that 2007 would be a “challenging” year due to high levels of consumer debt, and predicted slower growth in unsecured loans and increased regulatory costs, although UK current accounts were expected to do well.

The bank said that despite the provision for bad debts in 2007, its unsecured loans portfolio was showing signs of “stabilising”.

“Towards the end of 2006 we experienced some signs of stabilisation in the rate of our customers filing for bankruptcy and a slowdown in the rate of growth in Individual Voluntary Arrangements (IVAs),” said a spokesperson.

The bank also announced a 2% reduction in ongoing costs in its retail UK operation, and earlier this month announced a plan to close a processing centre in Peterborough with the loss of 243 jobs.




Related Posts


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Personal account pensions to ‘cost four times more’

The cost of setting up a personal account pension - the latest brainwave in the Government’s campaign to get people...