Lloyds profits fall by 70%

Lloyds TSB has seen profits plunge by 70% over the first half of the year due to the credit crunch and woes in its insurance business. It comes despite the rest of its business, including retail banking, “performing well”.

The financial services group reported a pre-tax profit of £599m for the first six months of the year compared to £1.99bn over the same period last year. It has also been hit with a further £585m hit from the credit crunch and investment writedowns, and a significant drop in the value of investments in its Scottish Widows division.

The company points out that excluding the impact of the market, its pre-tax profits were up by 11% to £2.16bn, and its retail banking arm increased profit by 15% to £911m. It says customer deposits have risen by 19% over the past year, but that mortgages are down. It adds that net new UK mortgage lending is expected to be around £60bn for the year compared to £108bn last year.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here