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
20 June 2005
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, 20 June 2005
re: Trading Statement
122/05 20 June 2005
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 2005. This announcement sets out the
information that will be provided at those meetings.
On a comparable basis under International Financial Reporting Standards*, Lloyds
TSB expects to deliver a satisfactory trading performance for the first half of
2005 and continues to deliver good earnings growth, demonstrating further
progress in its key strategic priorities.
The Retail Bank has continued to make progress in quality customer recruitment
and profitable franchise development, and is expected to achieve satisfactory
levels of customer lending and deposit balance growth during the half-year,
against a backdrop of slowing consumer spending. The rate of consumer lending
growth in the first half of 2005 is however expected to be slightly lower than
the double digit growth rates experienced in recent years.
Scottish Widows has continued to benefit from its focus on product and capital
efficiency. The launch, in the second half of 2004, of a new range of products
more tailored to the branch network distribution channel has delivered an uplift
in unit trust/OEIC sales during the first quarter of 2005. In addition, strong
progress continues to be made in the distribution of life, pensions and
long-term savings products through the Independent Financial Advisor
distribution channel.
In Wholesale and International Banking, strong progress continues in developing
and deepening our franchises. In Business Banking and Corporate Markets, in
particular, we are registering meaningful gains which reflect both our emphasis
on product and relationship cross-sell, and new customer acquisition. All main
businesses within the division continue to perform well and we are achieving
good levels of profitable new business.
The Group's strong cost performance in recent years has continued into the first
half of 2005 and we have made further improvements in processing quality. The
Group continues to expect to deliver revenue growth in excess of cost growth, on
an IFRS comparable basis*, in the first half of 2005.
Our focus on lending to existing customers, in a slowing consumer environment,
has resulted in overall asset quality remaining satisfactory. On an IFRS
comparable basis*, the Group's impairment charge for loan losses from its
continuing operations, as an annualised percentage of average lending, is
expected to be broadly consistent with the provisions charge in the first half
of 2004. A higher charge in retail banking, reflecting an increase in the
number of customers experiencing repayment difficulties, is expected to be
offset by a lower charge in the Group's corporate lending portfolios.
Current indications remain that the overall impact of the full implementation of
IFRS, excluding the volatility introduced by the requirements of IFRS and FRS
27, will be to reduce the Group's full year reported earnings per share,
compared with those that would have been reported under UK GAAP, by
approximately 6 per cent. Profit before tax (before volatility) is expected to
be approximately 8 per cent lower. This likely reduction in earnings in 2005 is
almost entirely due to changes in the timing of income and expense recognition
in the Group's financial statements, in particular with regard to the
application of effective interest rates, the reclassification of certain
securities from equity to debt, and the impact of discounting on levels of loan
loss impairment. The Group will endeavour to ensure that comparable underlying
business performance and trends, which exclude the impact of prospective
accounting changes relating to the implementation of IFRS, are clearly
identified on an ongoing basis.
Eric Daniels, Group Chief Executive, said "We are continuing to make progress
against our objective to deliver sustained earnings growth, despite signs of a
slowing consumer environment in the UK, and the Group is on track to deliver a
satisfactory trading performance for the first half of 2005."
* excluding the impact of prospective accounting changes relating to the
implementation of IFRS
For further information:-
Investor Relations
Michael Oliver +44 (0) 20 7356 2167
Director of Investor Relations
E-mail: michael.oliver@ltsb-finance.co.uk
Media
Mary Walsh +44 (0) 20 7356 2121
Director of Corporate Relations
E-mail: mary.walsh@lloydstsb.co.uk
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.
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: 20 June 2005