SEGMENTAL ANALYSIS RESTATEMEN
11 July 2008
65/08
LLOYDS TSB segmental analysis restatement
As part of Lloyds TSB Group's transition to Basel II on 1 January 2008, the Group has taken the opportunity to update its capital and liquidity pricing methodology. The main difference in this approach is to allocate a greater share of certain funding costs, previously allocated to the Central group items segment, to individual divisions.
In addition, to enable meaningful year-on-year comparisons to be made, the Group intends to report its 2008 segmental results on a continuing businesses basis, excluding the impact of the businesses sold in 2007.
The attached appendix sets out the relevant segmental analyses for 2007 which have been restated to reflect these reporting changes, and which have no impact on the statutory results of the Group.
For further information:-
Investor Relations
Michael Oliver +44 (0) 20 7356 2167
Director of Investor Relations
E-mail: michael.oliver@ltsb-finance.co.uk
Douglas Radcliffe +44 (0) 20 7356 1571
Senior Manager, Investor Relations
E-mail: douglas.radcliffe@ltsb-finance.co.uk
FORWARD LOOKING STATEMENTS
This announcement contains forward looking statements with respect to the business, strategy and plans of the Lloyds TSB Group, its current goals and expectations relating to its future financial condition and performance. 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. The 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 business and equity risk in its insurance businesses, changing demographic trends, unexpected changes to regulation, the policies and actions of governmental and regulatory authorities in the UK or jurisdictions outside the UK, including other European countries and the US, exposure to legal proceedings or complaints, changes in customer preferences, competition and other factors. Please refer to the latest Annual Report on Form 20-F filed with the US Securities and Exchange Commission for a discussion of such factors. The forward looking statements contained in this announcement are made as at the date of this announcement, and the Group undertakes no obligation to update any of its forward looking statements.
APPENDIX
SUMMARISED SEGMENTAL ANALYSIS
|
2007 |
UK Retail Banking |
Insurance and Investments |
Wholesale and International Banking |
Central group items |
Group excluding insurance gross up |
Insurance gross up |
Group |
|||||||||||
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net interest income |
3,695 |
|
(106) |
|
2,380 |
|
(368) |
|
5,601 |
|
421 |
|
6,022 |
|||||
|
Other income |
1,797 |
|
1,741 |
|
1,644 |
|
362 |
|
5,544 |
|
6,233 |
|
11,777 |
|||||
|
Total income |
5,492 |
|
1,635 |
|
4,024 |
|
(6) |
|
11,145 |
|
6,654 |
|
17,799 |
|||||
|
Insurance claims |
- |
|
(302) |
|
- |
|
- |
|
(302) |
|
(6,615) |
|
(6,917) |
|||||
|
Total income, net of insurance claims |
5,492 |
|
1,333 |
|
4,024 |
|
(6) |
|
10,843 |
|
39 |
|
10,882 |
|||||
|
Operating expenses |
(2,548) |
|
(611) |
|
(2,152) |
|
(6) |
|
(5,317) |
|
(13) |
|
(5,330) |
|||||
|
Trading surplus (deficit) |
2,944 |
|
722 |
|
1,872 |
|
(12) |
|
5,526 |
|
26 |
|
5,552 |
|||||
|
Impairment |
(1,224) |
|
- |
|
(572) |
|
- |
|
(1,796) |
|
- |
|
(1,796) |
|||||
|
Profit (loss) before tax |
1,720 |
|
722 |
|
1,300 |
|
(12) |
|
3,730 |
|
26 |
|
3,756 |
|||||
|
Volatility |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
- Insurance |
- |
|
(277) |
|
- |
|
- |
|
(277) |
|
- |
|
(277) |
|||||
|
- Policyholder interests |
- |
|
- |
|
- |
|
- |
|
- |
|
(222) |
|
(222) |
|||||
|
Profit on sale of businesses |
- |
|
272 |
|
385 |
|
- |
|
657 |
|
- |
|
657 |
|||||
|
Discontinued businesses |
- |
|
145 |
|
28 |
|
- |
|
173 |
|
(11) |
|
162 |
|||||
|
Settlement of overdraft claims |
(76) |
|
- |
|
- |
|
- |
|
(76) |
|
- |
|
(76) |
|||||
|
Profit (loss) before tax |
1,644 |
|
862 |
|
1,713 |
|
(12) |
|
4,207 |
|
(207) |
|
4,000 |
|||||
|
|
|
|
|
|
|
|
|
|||||||||||
|
Half-year to 30 June 2007 |
UK Retail Banking |
Insurance and Investments |
Wholesale and International Banking |
Central group items |
Group excluding insurance gross up |
Insurance gross up |
Group |
|||||||||||
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net interest income |
1,798 |
|
(56) |
|
1,109 |
|
(154) |
|
2,697 |
|
100 |
|
2,797 |
|||||
|
Other income |
883 |
|
833 |
|
931 |
|
182 |
|
2,829 |
|
3,380 |
|
6,209 |
|||||
|
Total income |
2,681 |
|
777 |
|
2,040 |
|
28 |
|
5,526 |
|
3,480 |
|
9,006 |
|||||
|
Insurance claims |
- |
|
(152) |
|
- |
|
- |
|
(152) |
|
(3,462) |
|
(3,614) |
|||||
|
Total income, net of insurance claims |
2,681 |
|
625 |
|
2,040 |
|
28 |
|
5,374 |
|
18 |
|
5,392 |
|||||
|
Operating expenses |
(1,261) |
|
(307) |
|
(1,041) |
|
(3) |
|
(2,612) |
|
(6) |
|
(2,618) |
|||||
|
Trading surplus |
1,420 |
|
318 |
|
999 |
|
25 |
|
2,762 |
|
12 |
|
2,774 |
|||||
|
Impairment |
(627) |
|
- |
|
(210) |
|
- |
|
(837) |
|
- |
|
(837) |
|||||
|
Profit before tax |
793 |
|
318 |
|
789 |
|
25 |
|
1,925 |
|
12 |
|
1,937 |
|||||
|
Volatility |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
- Insurance |
- |
|
9 |
|
- |
|
- |
|
9 |
|
- |
|
9 |
|||||
|
- Policyholder interests |
- |
|
- |
|
- |
|
- |
|
- |
|
(63) |
|
(63) |
|||||
|
Discontinued businesses |
- |
|
119 |
|
22 |
|
- |
|
141 |
|
5 |
|
146 |
|||||
|
Settlement of overdraft claims |
(36) |
|
- |
|
- |
|
- |
|
(36) |
|
- |
|
(36) |
|||||
|
Profit (loss) before tax |
757 |
|
446 |
|
811 |
|
25 |
|
2,039 |
|
(46) |
|
1,993 |
|||||
|
|
|
|
|
|
|
|
|
|||||||||||
|
Half-year to 31 December 2007 |
UK Retail Banking |
Insurance and Investments |
Wholesale and International Banking |
Central group items |
Group excluding insurance gross up |
Insurance gross up |
Group |
|||||||||||
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net interest income |
1,897 |
|
(50) |
|
1,271 |
|
(214) |
|
2,904 |
|
321 |
|
3,225 |
|||||
|
Other income |
914 |
|
908 |
|
713 |
|
180 |
|
2,715 |
|
2,853 |
|
5,568 |
|||||
|
Total income |
2,811 |
|
858 |
|
1,984 |
|
(34) |
|
5,619 |
|
3,174 |
|
8,793 |
|||||
|
Insurance claims |
- |
|
(150) |
|
- |
|
- |
|
(150) |
|
(3,153) |
|
(3,303) |
|||||
|
Total income, net of insurance claims |
2,811 |
|
708 |
|
1,984 |
|
(34) |
|
5,469 |
|
21 |
|
5,490 |
|||||
|
Operating expenses |
(1,287) |
|
(304) |
|
(1,111) |
|
(3) |
|
(2,705) |
|
(7) |
|
(2,712) |
|||||
|
Trading surplus (deficit) |
1,524 |
|
404 |
|
873 |
|
(37) |
|
2,764 |
|
14 |
|
2,778 |
|||||
|
Impairment |
(597) |
|
- |
|
(362) |
|
- |
|
(959) |
|
- |
|
(959) |
|||||
|
Profit (loss) before tax |
927 |
|
404 |
|
511 |
|
(37) |
|
1,805 |
|
14 |
|
1,819 |
|||||
|
Volatility |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
- Insurance |
- |
|
(286) |
|
- |
|
- |
|
(286) |
|
- |
|
(286) |
|||||
|
- Policyholder interests |
- |
|
- |
|
- |
|
- |
|
- |
|
(159) |
|
(159) |
|||||
|
Profit on sale of businesses |
- |
|
272 |
|
385 |
|
- |
|
657 |
|
- |
|
657 |
|||||
|
Discontinued businesses |
- |
|
26 |
|
6 |
|
- |
|
32 |
|
(16) |
|
16 |
|||||
|
Settlement of overdraft claims |
(40) |
|
- |
|
- |
|
- |
|
(40) |
|
- |
|
(40) |
|||||
|
Profit (loss) before tax |
887 |
|
416 |
|
902 |
|
(37) |
|
2,168 |
|
(161) |
|
2,007 |
|||||
This information is provided by RNS
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