Banking group Lloyds TSB today blamed the sale of overseas businesses for a 7% fall in half-year profits to £1.56 billion.
The result - in line with market expectations - masked a solid performance in the UK, where key product areas such as mortgages and credit card balances grew strongly.
Stripping out the impact of the disposals and one-off factors, Lloyds said group profits were ahead by 12%. This included a 3% rise in underlying earnings in the UK.
Progress was achieved against a backdrop of "substantial economic, regulatory and competitive pressures," the bank said.
Chief executive Eric Daniels said the group was well-placed to deliver an improved trading performance in the remainder of 2004 and beyond.
Lloyds TSB forged a new strategy in the wake of a 17% fall in profits last year, offloading businesses in Brazil and New Zealand to focus on the UK.
Cost-cutting measures were also introduced and saw the bank's workforce trimmed by 1,200 to 71,609 at the end of 2003.
The overhaul continued during the six months to June 30 with the sale of businesses in Panama, Guatemala and Honduras. Exits from Argentina and Colombia have been agreed and the disposals are awaiting approval of regulators.
Friday July 30, 2004
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