LLOYDS TSB Results a fund managers view

UK Growth & Income Fund Manager and Banking Sector Specialist, Chris White, gives his views on the Lloyds Interim Results

There was fuel for the bulls and the bears in today's results for Lloyds TSB.

Operationally, Eric Daniels and the management team have done a terrific job. Lloyds is in robust health which was highlighted by revenue growth of 9%, underlying profit growth of 11% and a mortgage market share in H1 2008 of 24%. However, despite a strong total capital ratio and AAA Moodys credit rating, the core equity tier 1 ratio looks a little light at 6.2% for where we are in the economic cycle.

Overall, it remains our favored UK domestic bank due to the conservative approach to lending and the ability to compete in a very difficult economic environment.

30 July 2008 © Moneyextra.com

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