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Lloyds Banking Group plc Message Board

  • bluecheese4u bluecheese4u Feb 22, 2008 8:27 AM Flag

    Lloyds TSB Group plc-ADR (LYG) 2007 Results

    Lloyds TSB Group plc-ADR (LYG) 2007 Results

    Slide Presentations

    "I am delighted to report that the Group has continued to deliver a strong
    trading performance, notwithstanding the significant recent turbulence in global
    financial markets. Our higher quality, lower risk, business model has been
    clearly demonstrated in the resilience of our earnings stream.

    The Board remains confident in the Group's earnings outlook and, as a result,
    has decided to increase the final dividend by 5 per cent to 24.7 pence per

    Sir Victor Blank

    Strong financial performance with statutory earnings per share
    increased by 17 per cent to 58.3p. Economic profit increased by 21 per cent.
    Statutory profit before tax was 6 per cent lower at GBP4,000 million, largely
    reflecting adverse policyholder interests volatility.

    - Strong underlying profit momentum. Profit before tax up 6 per cent to GBP3,919
    million notwithstanding impact of global financial markets turbulence. Excluding
    the impact of GBP280 million market dislocation, profit before tax increased by
    13 per cent to GBP4,199 million.

    - High returns maintained, with return on equity of 25.2 per cent.
    Improved return on risk-weighted assets, and return on Embedded Value increased
    to 9.9 per cent.

    - Good income growth. Income growth of 5 per cent, reflecting the
    strength and resilience of the Group's revenue base. Excluding the impact of
    market dislocation and insurance grossing, income increased by 6 per cent.

    - Excellent cost management. Cost growth of only 1 per cent, delivering wide
    positive jaws. Cost:income ratio improved by 1.8 percentage points to 49.0 per
    cent. Groupwide productivity programme exceeded 2007 expectations, and remains
    on track to deliver benefits of GBP250 million in 2008.

    - Satisfactory credit quality. Retail impairment charge lower than in
    2006. Based on current trends, we do not expect a significant change in the
    retail impairment charge in the first half of 2008, compared to the first half
    of 2007. Corporate asset quality remains good.

    - Strong liquidity and funding position maintained throughout the
    recent global financial markets turbulence.

    - Excellent capital management. Robust capital ratios maintained.
    Satisfactory transition to Basel II, with tier 1 capital ratio increasing to 9.5
    per cent. Over GBP3.6 billion of capital repatriated from Scottish Widows over
    the last 3 years.

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