-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GhmX0Q1BfOfAgkBGUIntWEzJzYywxP0y9pDeXYqH3RCMVnIBWG1zay5PpX6wS/km Klm2mQyd4R6bnuBPypufhQ== 0001191638-04-001107.txt : 20040621 0001191638-04-001107.hdr.sgml : 20040621 20040621062700 ACCESSION NUMBER: 0001191638-04-001107 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040621 FILED AS OF DATE: 20040621 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LLOYDS TSB GROUP PLC CENTRAL INDEX KEY: 0001160106 STANDARD INDUSTRIAL CLASSIFICATION: FINANCE SERVICES [6199] IRS NUMBER: 000000000 STATE OF INCORPORATION: X0 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15246 FILM NUMBER: 04871608 BUSINESS ADDRESS: STREET 1: 25 GRESHAM STREET CITY: LONDON EC2V 7HN STATE: X0 ZIP: 00000 MAIL ADDRESS: STREET 1: 25 GRESHAM STREET STREET 2: LONDON EC2V 7HN CITY: UNITED KINGDOM STATE: X0 ZIP: 00000 6-K 1 lloy200406216k.txt TRADING STATEMENT 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. .../more 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 -----END PRIVACY-ENHANCED MESSAGE-----