SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
21 June 2004
LLOYDS TSB GROUP plc
(Translation of registrant's name into English)
5th Floor
25 Gresham Street
London
EC2V 7HN
United Kingdom
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F..X..Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes .....No ..X..
If "Yes" is marked, indicate below the file number
assigned to the registrant in connection with Rule
12g3-2(b): 82- ________
Index to Exhibits
Item
No. 1 Regulatory News Service Announcement, dated 21 June 2004
re: Trading Statement
103/04
21 June 2004
LLOYDS TSB - TRADING UPDATE
Lloyds TSB Group plc will shortly be meeting analysts ahead of its close period
for the half-year ending 30 June 2004. This announcement details the
information that will be provided at those meetings.
Good progress continues to be made in repositioning the Group for growth and
Lloyds TSB expects to deliver a satisfactory trading performance for the
half-year.
The Group has continued to deliver good levels of balance sheet growth. At 31
March 2004 total Group loans and advances to customers were GBP137.8 billion, an
increase of 9 per cent, on a continuing businesses basis, over the last 12
months. On the same basis, customer deposits increased by 3 per cent to GBP116.7
billion. The Group net interest margin for the first three months of 2004 was
2.97 per cent compared with a Group net interest margin, on a continuing
operations basis, of 2.92 per cent in the first half of 2003, and 3.03 per cent
in the second half of 2003. Total Group risk-weighted assets at 31 March 2004
were GBP119.3 billion, an increase of 1 per cent during the quarter, as growth
in customer loans and advances, particularly in mortgages, was partly offset by
a reduction in debt securities.
.../more
LLOYDS TSB - TRADING UPDATE .../2
Retail Banking and Mortgages has continued to make progress in profitable
franchise development, notwithstanding some slowdown in the demand for consumer
credit. The retail bank has continued to maintain and grow market share in its
core markets, particularly in mortgage and credit card lending, albeit with some
expected margin erosion. Mortgage balances outstanding at 31 March 2004 totalled
GBP73.4 billion, an increase of 13 per cent over the last 12 months. Net new
mortgage lending in the first quarter of 2004 was GBP2.6 billion, compared with
GBP2.2 billion in the first quarter of 2003. Personal loan and credit card
lending increased by 12 per cent compared to the first quarter of 2003,
excluding the impact of the Goldfish acquisition, and by 3 per cent since 31
December 2003. Balances on current accounts and savings and investment accounts
grew by 9 per cent compared to the first quarter of 2003.
Scottish Widows has continued to change its product mix to focus on more
profitable and capital efficient products. Overall weighted sales of life and
pension products in the first quarter of 2004, at GBP136.5 million, were broadly
in line with the first quarter of 2003. Unit trust sales fell to GBP21.9
million, compared to GBP33.5 million in the first quarter of 2003, as the market
for regular premium equity based savings products continues to be subdued.
Scottish Widows is strongly capitalised and remains on track to pay a 2004
dividend to Lloyds TSB.
In Wholesale Banking very good progress continues to be made in developing the
overall franchise by extending and deepening relationships with our existing
corporate customers. As a result, all businesses within the division have
performed well and we have achieved a good increase in new business volumes.
Overall balance sheet efficiency continues to improve with a 6 per cent
reduction in fine margin debt securities during the first quarter of 2004 whilst
risk-weighted assets were broadly unchanged.
Total Group asset quality remains satisfactory, with no material increase in the
level of non-performing lending. The annualised charge for bad and doubtful
debts in the first quarter of 2004, as a percentage of average lending, was
broadly similar to the 0.66 per cent reported for the full year 2003.
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LLOYDS TSB - TRADING UPDATE .../3
In the first five months of 2004 there was a negative investment variance
totalling GBP97 million, largely as a result of lower gilt values and the slight
fall in the FTSE All Share Index during the period.
Eric Daniels, Group Chief Executive, said "We are continuing to make good
progress in our key priority to reposition the Group for sustainable growth and
we remain well positioned to deliver our planned improved performance in the
second half of 2004 and beyond".
The Group's results for the half-year ending 30 June 2004 will be announced on
30 July 2004. No changes in accounting policies are expected in the first half
of 2004. The attached appendix provides detailed half-year comparative figures
for 2003 which reflect changes in the Group's segmental analysis to reflect the
introduction, in 2004, of the management of the Group's distribution channels as
profit centres, and other changes in internal pricing arrangements.
For further information:-
Investor Relations
Michael Oliver +44 (0) 20 7356 2167
Director of Investor Relations
E-mail: michael.oliver@ltsb-finance.co.uk
Ian Gordon +44 (0) 20 7356 1264
Senior Manager, Investor Relations
E-mail: ian.gordon@ltsb-finance.co.uk
Media
Terrence Collis +44 (0) 20 7626 1500
Director of Group Corporate Communications
E-mail: terrence.collis@lloydstsb.co.uk
Mary Walsh +44 (0) 20 7626 1500
Head of Media Relations
E-mail: mary.walsh@lloydstsb.co.uk
.../more
LLOYDS TSB - TRADING UPDATE .../4
FORWARD LOOKING STATEMENTS
This announcement contains forward looking statements with respect to the
business, strategy and plans of the Lloyds TSB Group and its current goals and
expectations relating to its future financial condition and performance.
Statements that are not historical facts, including statements about Lloyds TSB
Group's or management's beliefs and expectations, are forward looking
statements. 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. Lloyds TSB 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 businesses and equity risk in its insurance businesses, inherent risks
regarding changing demographic developments, catastrophic weather and similar
contingencies outside Lloyds TSB Group's control, any adverse experience in
inherent operational risks, any unexpected developments in regulation or
regulatory actions, changes in customer preferences, competition, industry
consolidation, acquisitions and other factors. For more information on these
and other factors, please refer to Lloyds TSB Group's Annual Report on Form 20-F
filed with the US Securities and Exchange Commission and to any subsequent
reports furnished by Lloyds TSB Group to the US Securities and Exchange
Commission or to the London Stock Exchange. The forward looking statements
contained in this announcement are made as of the date hereof, and Lloyds TSB
Group undertakes no obligation to update any of its forward looking statements.
.../more
LLOYDS TSB - TRADING UPDATE .../5
LLOYDS TSB GROUP
SEGMENTAL ANALYSIS
Half-year ended UK Retail Wholesale
30 June 2003 Banking Insurance and Central
and and International group Continuing Discontinued
Mortgages Investments Banking items operations operations Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Net interest income 1,515 39 898 (167) 2,285 286 2,571
Other finance income - - - 17 17 - 17
Other operating income 741 447 750 288 2,226 89 2,315
Total income 2,256 486 1,648 138 4,528 375 4,903
Operating expenses 1,354 133 991 6 2,484 143 2,627
Trading surplus 902 353 657 132 2,044 232 2,276
General insurance claims - 108 - - 108 - 108
Bad debt provisions 298 - 145 (13) 430 40 470
Amounts written off fixed
asset investments - - 24 - 24 - 24
Income from joint ventures (11) - - - (11) - (11)
Profit before tax* 593 245 488 145 1,471 192 1,663
Investment variance - 42 - - 42 - 42
Changes in economic - (8) - - (8) - (8)
assumptions
Loss on sale of business - - - - - (15) (15)
Profit before tax 593 279 488 145 1,505 177 1,682
Half-year ended UK Retail Wholesale
31 December 2003 Banking Insurance and Central
and and International group Continuing Discontinued
Mortgages Investments Banking items operations operations Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Net interest income 1,622 42 977 (182) 2,459 225 2,684
Other finance income - - - 17 17 - 17
Other operating income 792 534 811 11 2,148 53 2,201
Total income 2,414 576 1,788 (154) 4,624 278 4,902
Operating expenses 1,229 128 1,057 3 2,417 129 2,546
Trading surplus 1,185 448 731 (157) 2,207 149 2,356
General insurance claims - 128 - - 128 - 128
Bad debt provisions 296 - 161 - 457 23 480
Amounts written off fixed
asset investments - - 20 - 20 - 20
Income from joint ventures (11) - - - (11) - (11)
Profit before tax* 878 320 550 (157) 1,591 126 1,717
Investment variance - 83 - - 83 - 83
Changes in economic - (14) - - (14) - (14)
assumptions
Profit on sale of businesses - - - - - 880 880
Profit before tax 878 389 550 (157) 1,660 1,006 2,666
* excluding investment variance, changes in economic assumptions and profit
(loss) on sale of businesses
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
LLOYDS TSB GROUP plc
(Registrant)
By: M D Oliver
Name: M D Oliver
Title: Director of Investor Relations
Date: 21 June 2004