Lloyds TSB says its full-year performance will be in line with analysts' forecasts and that its lending margin stabilised in the third quarter.
Net interest margin at Britain's fifth-biggest bank was 3.02 per cent in the first nine months of this year compared with 3.01 per cent in the first six months, the bank said in a statement today. The margin narrowed in the first six months from a year earlier.
The bank's asset quality remains good, Lloyds said. Its share of net new mortgage lending fell in the third quarter because it was wary of lending to people renting out property, the bank reported.
Analysts' consensus is for full-year pre-tax profit to rise 28 per cent to £3.34 billion sterling from £2.61 billion a year earlier. This year's profit will be boosted by about £900 million after tax from selling businesses, Lloyds said.
Chief Executive Mr Eric Daniels has sold the bank's Brazilian and New Zealand units since taking over in June to focus on reviving the core British business after three years of stagnant underlying earnings.
Lloyds's shares have fallen 9.3 per cent this year and are the second-worst performing among Britain's 11 listed banks. The bank will announce 2003 results on March 8th.