Lloyds TSB has announced that pre-tax profits have fallen by 70 per cent in the first half of the year and blames the problems of financial markets and the global economic slowdown for their losses, it has emerged.
Britain's fifth largest bank took a £585 million blow after "credit turmoil" and "investment writedowns at its insurance arm", the Press Association has revealed.
However, the group's mortgage business, Cheltenham & Gloucester, boosted profits after the big "clampdown" in the new mortgage market, taking a 24 per cent year-on-year profit from the shift in trade.
It added that the Lloyds TSB group was optimistic as its losses were better than those suffered by its rivals, and that it is now the second biggest lender of new mortgages after Abbey, with both toppling previous leader Halifax from top spot.
Today, Halifax Bank of Scotland also announced losses of 72 per cent after concerns surrounding customer struggles with repayments, with pre-tax gains dropping to £848 million.
JST Financial, New Mortgage, Re-mortgage Specialists catering for good and adverse credit for UK homeowners