Shakeup paying off for Lloyds TSB.
Banking group Lloyds TSB reported satisfactory progress for the year so far today as it showed signs of benefiting from a major shake-up.
Chief executive Eric Daniels said the group remained on course to deliver the improved performance it had promised for the second half of 2004 and beyond.
The improvements follow the sale of several businesses, including the National Bank of New Zealand, to focus on UK banking operations.
In an update for the first half of 2004, Lloyds TSB reported improvements for its main retail banking and mortgages arm - despite signs of a slowdown in demand for consumer credit and pressure on the profitability of its lending.
The bank said its net interest margin fell to 2.97% from 3.03% in the second half of 2003.
Mortgage balances totalled pounds 73.4m on March 31 - a 13% increase on the same date last year - as Lloyds TSB boosted its share of the market.
Net mortgage lending figure stood at pounds 2.6bn against pounds 2.2bn in the first quarter of 2003. Personal loan and credit card lending rose by 12%. Lloyds TSB reported little change in provisions for bad debts at 0.66% of average lending.
Mr Daniels, who is due to announce half-year results on July 30, said he was pleased with progress.