Lloyds Tsb Group (LYG)

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Lloyds TSB Group plc (or Lloyds), a United Kingdom-based financial services company formed following the 1995 merger of Lloyds Bank Group and TSB Group, offers a full range of banking and financial services in the U.K. and several international markets. A few of its banking subsidiaries include Lloyds TSB Bank, Lloyds TSB Scotland, and Cheltenham & Gloucester, while Scottish Widows, a leading provider of long-term savings and protection products in the U.K. acquired in 2000, is a notable nonbanking subsidiary. The primary business activities of Lloyds TSB Group are classified as: U.K. Retail Banking Insurance and Investments and Wholesale and International Banking. The UK Retail Banking unit (37% of 4.2 billion pretax profit before central group items in 2006) provides a comprehensive range of retail banking, wealth management, and residential mortgage services to about 15 million customers in England, Scotland, and Wales through a network of 2,200 branches and 39 offices. Corporate banking, treasury, and asset finance comprise the company's Wholesale Banking operations. This, together with International Banking, which encompasses the company's operations in the Americas, Europe, the Middle East, and Asia, accounted for 40% of Lloyds TSB Group's profit before tax in 2006. Disposals of operations in New Zealand, Brazil, and France in 2003 and in Latin America in 2004 significantly reduced the scope of Lloyds' international banking activities. The Insurance and Investments segment (23% of profit before tax) offers life assurance, general insurance, pension, and several investment products, primarily through Scottish Widows.

Interest-bearing sources are the company's prime revenue earners, accounting for 51% of 11.0 billion 2006 net revenue (total revenue less interest expense). Fee-based and non-interest sources generated the remaining 49%. As of December 31, 2006, Lloyds TSB Group s total asset base stood at 344 billion (US$673 billion), of which customer loans represented 190 billion (97% were domestic loans, and the remaining 3% were foreign). Lloyds TSB Bank's senior debt ratings are Aaa by Moody s and AA by Standard & Poor's.

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