Lloyds TSB's 2003 results show an increase in profit before tax on a statutory basis of £1.730bn or 66 per cent to £4.348bn from £2.618bn in 2002.
However, Lloyds points out that to enable meaningful comparisons to 2002, it is necessary to exclude the gains on business disposals, investment variances, and changes in economic assumptions for the group's life assurance business. If this is done, profit before tax actually decreased in 2003 by 4 per cent to £3.38 from £3.506bn.
Gross new lending increased by 27 per cent to £24.4bn, while profit before tax from insurance and investments decreased by 11 per cent to £1.094bn.
Lloyds says it is satisfied with Scottish Widows' overall capital position when calculated using the new realistic basis of balance sheet reporting, estimating that a realistic surplus within the long term fund of Scottish Widows is more than three times the risk capital margin.