2006 Results23 February 2007
Sir Victor BlankChairman
Chairman’s overview
• High quality, balanced set of businesses
• Increased trading momentum
• Good balance sheet growth
• Increased focus on non-lending products
• Higher income growth in UK Retail Banking
• Productivity programme extended
• Credit quality remains satisfactory
• Robust capital position
2006 Results23 February 2007
Helen WeirGroup Finance Director
Good underlying results*
Earnings per share 46.9p44.2p 6
Economic profit £1,692m£1,601m 6
* excluding volatility and the pension schemes related credit and, in 2005, profit on sale and closure of businesses, customer redress provisions and the strengthening of mortality reserves
Profit before tax £3,713m£3,450m 8
Post-tax return on equity 25.1%25.5%
20062005 % Change
Total dividend per share 34.2p34.2p
Total shareholder return 24.8%10.9%
2006 – continued progress
• Continuing to deliver good earnings progress…
…across each of our businesses
• Sustaining high returns…
…and driving growth
• Maintaining a robust capital position…
…while continuing to deliver returns to shareholders
AND
• Higher income growth in the second half
Underlying results – strong positive jaws*
Total income, after claims 10,69710,070 6
Operating expenses (5,429)(5,321) (2)
Profit before tax 3,7133,450 8
£m 20062005 % Change
Trading surplus 5,2684,749 11
Impairment (1,555)(1,299) (20)
* excluding volatility and the pension schemes related credit and, in 2005, profit on sale and closure of businesses, customer redress provisions and the strengthening of mortality reserves
Accelerating income growth in the second half*
Total income, after claims 5,5355,162 76
Operating expenses (2,819)(2,610) (3)(1)
Profit before tax 1,9611,752 88
£m 2006H22006H1 % Change% Change
Trading surplus 2,7162,552 1111
Impairment (755)(800) (19)(20)
* excluding volatility and the pension schemes related credit and, in 2005, profit on sale and closure of businesses, customer redress provisions and the strengthening of mortality reserves
Balanced trading momentum across each division*
Income
Costs
Impairment
Trading surplus
Profit before tax
5,263 4
(2,476) 2
(1,238) (16)
2,787 10
1,549 5
UKRB£m % Change
4,212 8
(2,264) (4)
(308) (64)
1,948 14
1,640 8
W&IB£m % Change
1,596 12
(646) (6)
-
950 15
950 15
I&I£m % Change£m
* excluding volatility and the pension schemes related credit and, in 2005, profit on sale and closure of businesses, customer redress provisions and the strengthening of mortality reserves. I&I excludes insurance grossing adjustments and the impact of capital repatriation
Good income growth*
Net interest income 5,6265,434 4
£m 20062005 % Change
Other income, net of claims 5,0564,631 9
10,69710,070 6
Insurance grossing adjustments 155
Total income, net of claims 10,68210,065 6
Other income 5,2564,828
Non-life insurance claims (200)(197)
* excluding volatility and profit on sale and closure of businesses. Also excludes the strengthening of reserves for mortality in 2005
Good asset and deposit growth
+6%
Average CustomerDeposits
2005 2006
£66.7bn £71.0bn
+17%
Average InterestEarning Assets*
2005 2006
£91.8bn
£107.2bn
* excluding reverse repos
+8%
Average CustomerDeposits
2005 2006
£56.6bn£61.0bn
+7%
Average InterestEarning Assets
2005 2006
£97.6bn£104.7bn
£19.4bn
£78.2bn
£19.7bn
£85.0bn
Mortgages Unsecured
UK Retail Banking Wholesale & International Banking
Net interest margin slightly lower*
* relating to the Group’s banking businesses, excluding volatility, Products and Markets and other
2005H1 2005H2 2006H1 2006H2
Funding (1)bp
Product (2)bp
Mix (8)bp
(11)bp
Year-on-year Margin Movement
3.11
3.00
3.16
3.073.03
2.97
(11)bp
UKRB: income growth driven by liabilities
Strong savings and bancassurance growth
Liability Driven£171 million
Asset Driven£(15) million
£5,057m
£89m
£5,263m
Savings &Investment
Growth
AVA andOther
Current Account Fees
LendingGrowth
20062005 Wealth Other(incl OtherInsurance)
£49m£50m£68m
£(83)m
£33m
LendingRelated
Insurance
I&I: components of growth*
* EEV basis, excluding volatility, other items and, in 2005, the strengthening of reserves for mortality
New businessprofit 346254 36
852727 17
£m 20062005 % Change
Existing business 339226 50
852689 24
Impact of capitalrepatriation -38
Expectedreturn 167209 (20)
IFA
Bancassurance
Other
New Business Sales (PVNBP)
+62%
+14%
£9,740m
2006
£7,842m
2005
+24%
£4,698m
£2,114m
£1,030m
£5,358m
£3,421m
£961m
Strong EEV new business profit growth
7,020 6Life and pensions 287 24+60bp4.1%
2,720 124OEICs 59 156+30bp2.2%
9,740 24Total 346 36+40bp3.6%
PVNBP£m % Change
Newbusiness
profit£m % Change
New businessmargin
2006
Change
I&I: drivers of strong margin growth
2005 Margin
Product Mix
Price/CostManagement
2006 Margin
Life & Pensions OEICs
• Higher leverage of fixed costs• New corporate pensions platform• Withdrawal/re-pricing in
uneconomic sectors
• Lower protection sales
3.5%
(0.2)%
4.1%
0.8%
1.9%
(0.2)%
2.2%
0.5%
W&IB: components of income growth
+8%
£3,893m
£230m£25m£52m £4,212m
CorporateMarkets
BusinessBanking
International/Other
2005 2006AssetFinance
£12m
+15%
+7%+1%
W&IB: diversifying Corporate Markets revenue streams
£1,584m£48m
£1,814m
Sales &Structuring
DebtCapitalMarkets
LargeCorporate
20062005 AcquisitionFinance
Other
£46m£41m £34m
£61m
+15%
Excellent cost control*
UK Retail Banking 2,4762,522 2
Insurance & Investments 646607 (6)
Wholesale & International Banking 2,2642,181 (4)
Central group items 5124
5,4295,321 (2)
5,4375,334 (2)
Insurance grossing adjustments (8)(13)
£m 20062005 % Change
* excluding pension schemes related credit and, in 2005, customer redress provisions
W&IB: investing for growth
Invest to grow
8.2%
3.8%
1.0%
W&IBCost Growth
Investment inInfrastructure
Investment in Efficiency
UnderlyingW&IB Cost
Growth
W&IB RevenueGrowth
Investmentin CM Staff
1.1%
1.4%
0.3%
Productivity programme key activities
Leverage scale and dedicated expertise in procurement
• 60% spend handled via centre of excellence• 93% of spend with top 1,000 suppliers• Renegotiation of major contracts
Transform manufacturing and processing efficiency
• Number of sites reduced by 25% since 2004 • Unit costs down 8% since 2004• Consolidation of Wholesale payment and trade
finance activities
Simplify management structures and organisational
effectiveness
• Proportion of staff more than 7 levels below CEO reduced from 44% to 13%
• Increased ‘spans of control’ by 27%• Programme delivered 1,600 FTE reduction in 2006
Productivity programme ahead of schedule …
Financial Principles
• Self funding
• Payback c. 2 years
• Reinvest c. 50% of gross benefits
2005 2006 2008
... and extended to include 2008 benefits
2007
£(40)m
£47m
£125m
£250m
£142m
£(95)m
Net Benefit
Income growth ahead of costs in all divisions*
2%
Income Costs
Group
Wholesale &InternationalBanking
Insurance &Investments
UK RetailBanking
52.8%
50.8%
2005 2006
* excluding volatility. Also excludes customer redress provisions and the strengthening of reserves for mortality in 2005 and the pension schemes related credit in 2006. I&I excludes insurance grossing adjustments and is adjusted for the impact of the £800 million capital repatriation in December 2005
C:I ratio improved
290bp
C:I ratio improved
220bp
4%
(2)%
12%
6%
4%
8%
6%
GroupCost:Income Ratio
Impairment losses on loans and advances
% of Average Lending2006£m
Variance% 20062005
2005£m
Wholesale & International Banking 308 (64) 0.390.28188
UK Retail Banking 1,238 (16) 1.181.091,065
Total 1,555 0.830.761,299 (20)
- Credit cards 490 (24) 6.995.80396
- Personal loans/overdrafts 740 (13) 5.855.33656
- Mortgages 8 0.010.0213
Central group items 946
Insolvency trends slowing
Total Insolvencies
IVAs
Market
• Higher levels of insolvency
– Rapid take-up of IVAs
• Recent slowdown in IVA growth rate
Lloyds TSB
• Lloyds TSB experience consistent with market
• Credit scoring models include propensity to repay
• Tighter monitoring and management
Source: Insolvency Service (seasonally adjusted)
Number of Individual Insolvencies in England and Wales
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2002 2003 2004 2005 2006
Bankruptcies
Mar 04 Jun 04
Arrears performance by vintage – loans
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12 Month 14 Month 16 Month 18 Month 20 Month 22 Month 24
Sep 04 Dec 04 Mar 05 Jun 05 Sep 05 Dec 05 Mar 06 Jun 06
Arrears performance by vintage – credit cards
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Mar 04 Jun 04 Sep 04 Dec 04 Mar 05 Jun 05 Sep 05 Dec 05 Mar 06 Jun 06
Step change in collections effectiveness
• 25% reduction in proportion of cards 1 cycle down
• Increased customer contact
• Cost of collections reduced
OutboundCustomerContacts
Inbound Calls
2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 Jun 05
All banks
Lloyds TSB
% card balances between 1 to 4
cycles delinquent
Sep 05 Dec 05 Mar 06 Jun 06 Sep 06 Dec 06
Source: independent research
Asset quality remains strong
Impaired AssetsImpaired Assets as a
Percentage of Total Lending
2.3%2.0%
30 Jun 2006 31 Dec 200631 Dec 2005
2.1%£4,006m£4,029m
30 Jun 2006 31 Dec 200631 Dec 2005
£4,122m
(3)%
Scottish Widows – strong capital generation
Expected in-force capital release 652 716
New business strain including required capital (287) (283)
£m 2005 2006
Expected capital generated 365 433
Annual dividend (200) (206)
Expected capital generated after annual dividend 165 227
Post-tax return on European Embedded Value 8.0% 9.3%
Risk capital margin cover (year end) 11.9x 17.4x
Capital ratios remain robust
Total capitalratio
10.9% 10.7%
31 December2005
31 December2006
Tier 1 ratio 8.2%7.9%UKRB
W&IB
Other
+8%
Risk-weighted Assets
£144.9bn£156.0bn
£60.4bn £59.1bn
£80.1bn £91.8bn+15%
(2)%
2005 2006
Reducing the pension schemes’ deficit
Net defined benefit scheme deficit 3,294 2,099 (1,195)
Unrecognised actuarial (gains)/losses (485) 263
£m 2005 2006 Difference
Recognised balance sheet deficit 2,910 2,462 (448)
Deferred tax (873) (739)
IAS 19 pension deficit, net of tax 2,037 1,723
Other retirement benefit schemes 101 100
Total pension schemes contributions- normal- deficit
195209
242276
Rigorous application of economic profit metric in decision-making
• EP driving loan pricing in UKRB
• EP driving business decisions in Business Banking
• EP driving relationship decisions and stronger focus on cross-sell in Corporate Markets
• IRRs driving product focus and design in Scottish Widows
Improving our balance sheet management
Active management of balance sheet for optimum risk/return
• Mortgage securitisation of > £10 billion
− UK’s largest RMBS
• First collateralised loan obligation
− a £1 billion transaction
• Capital repatriation programme in Scottish Widows
− £1.7 billion in last 2 years
• $1 billion Preference Share issue
− ‘Subordinated Bond of the Year’ *
* 2006 International Financing Review awards
Capital outlook – introduction of Basel 2
• Credit risk waiver application submitted in December 2006
• Preparations well advanced with parallel running during 2007
• Satisfactory capital ratios to be maintained throughout the transition
• No ‘investment in subsidiaries’ deduction expected from tier 1 capital until 2012
2006 – continued earnings momentum
Continuing to build earnings momentum
• Strong sales growth, improving sales mix• Accelerating Retail revenue• Widening of positive jaws • Double-digit trading surplus growth
Maintaining a robust capital position and dividend
• Capital ratios remain robust• Increased retained earnings• Improving dividend cover
Sustaining high returns
• Improving cost:income ratio• Satisfactory asset quality• ROE remained strong• Increasing economic profit
2006 Results23 February 2007
Eric DanielsGroup Chief Executive
• Building momentum− Two divisions, W&IB and I&I, continue to grow strongly− UKRB building momentum
• Improving productivity− Positive Jaws in every Division− Lower unit costs and better sales and service− Continuing to invest in future growth
• Slowing impairment growth
• Generating sustainable, faster growth− Results show accelerating performance with continuing high
returns
2006 results: building earnings momentum
Our financial progress: consistently improving performance
* 2002-4 figures on a UK GAAP basis excluding discontinued operations. 2005-6 figures are on a full IFRS basis, excluding volatility and one-off items. Growth rates are for comparable accounting standards year-on-year
ROE*PBT*
Income growth* Expenses growth*
0%
3%
6%7%
2002-03 2003-04 2004-05 2005-06
6%
0%2%
4%
2002-03 2003-04 2004-05 2005-06
25.2%
23.1%
25.1%23.5%
25.5%
2002 2003 2004 2005 20062002 2003 2004 2005 2006
£3.2bn £3.1bn
£3.7bn£3.4bn £3.5bn
A business model for high quality, sustained growth
Consistent, sustained, double digit economic profit growthOur goal
Our belief
Our focus
Income
Sustained growth comes from strong
customer franchises
Acquire customers and deepen
relationships in core franchises
Expense
Sustained growth comes from continuous
productivity growth
Leverage a broad set of productivity
disciplines across the Group
Profitability
Sustained growth comes from capital
efficiency
Rigorously apply economic profit
discipline at every level
Employee engagement1 Customer satisfaction2 Sales3 Income4
100
105
100
117
132
1 Year average, indexed to 1002 Average CARE scores for UKRB, Business Banking, Corporate Banking, Scottish Widows and General
Insurance3 UKRB and Scottish Widows data; W&IB data not available on a comparable basis4 2003-04 on a UK GAAP basis. 2005-06 figures on a full IFRS basis
100
Increasingly motivated employees
More satisfied customers Sales growth Income growth
116
100
UK FSNorm
A business model for high quality, sustained growth
2003 2004 2005 2006 2003 2004 2005 20062003 2004 2005 2006 2003 2004 2005 2006
Building strong customer franchises
Continuous productivity growth
A business model for high quality, sustained growth
1 Group Defects Per Million Opportunities. Group-wide reporting began in Q1 2004, since when Sigma measurement coverage has increased from 45% of Group processes to 87% in 2006
2 On a continuing basis3 2003 unit costs not available on a consistent basis. Indexed to 1004 2003-04 on a UK GAAP basis; 2005-06 on a full IFRS basis
Applying ‘Sigma’reduces error
rates…
…together with ‘Lean’, we are doing
more for lessReducing unit costs
Number of FTEs2
74,413
65,499
DPMO1 Group Ops unit cost3
Improving cost:income ratio
Cost:income ratio4
100
9250.8%
55.0%
42,711(Jan 2004)
2,555(Dec 2006)
2003 2004 2005 2006 2003 2004 2005 20062003 2004 2005 2006 2003 2004 2005 2006
Invest to protect returns and raise growth
Medium ‘Jaws’
Income GrowthLow High
Low
High
Return
Invest to accelerate growth
Narrow ‘Jaws’
Invest only to fix the business
Widest ‘Jaws’
Invest only in profitable growth
Wide ‘Jaws’
Investing in growth and returns
1 Includes revenue investment and capital investment. Indexed to 100
Growing our investment
Investment expenditure1
A business model for high quality, sustained growth
2003 2004 2005 2006
100
112
A business model for high quality, sustained growth
Our goal Consistent, sustained, double digit economic profit growth
Our focus
Income
Acquire customers and deepen
relationships in core franchises
Expense
Leverage a broad set of productivity
disciplines across the Group
Profitability
Rigorously apply economic profit
discipline at every level
• Income up 8%
• Cost:income down 2pp
• Trading surplus up 14%
• PBT up 8%
UKRB
• Income up 12%
• Cost:income down 2pp
• Trading surplus up 15%
• PBT up 15%
1 excluding volatility and central group items2 excluding insurance grossing adjustments and impact of December 2005 capital repatriation and the
strengthening of reserves for mortality
Wholesale & International
• Income up 4%
• Cost:income down 3pp
• Trading surplus up 10%
• PBT up 5%
Insurance and Investments2
Well balanced Group with strength in all Divisions
2006 PBT1
UKRB£1,549m
37% of total
W&IB£1,640m
40% of total
I&I£950m
23% of total
• Improved customer satisfaction
• Improved sales capability
• Rebalanced sales mix
• Acquired new customers
• Innovated with new product and service offers
• Improved our sales efficiency and effectiveness
• Reduced back-office staff
Grow income from existing customer base
Grow income from new customers
Improve productivity
What we did in 2006Our objectives
UKRB: driving growth
Our customer satisfaction scores are improving…
…but we want to move beyond satisfying customers
Branch ‘touch’ scores1
100
107
NPV per customer(stylised)
Today: moving beyond
satisfactionOur goal: advocacy
Now #1 for branch satisfaction amongst the big 4 high street banks2
1 Indexed to 1002 Source: GfK Financial Research Survey (FRS) 3 months ending Dec 2006, 13,995 main current account
holders interviewed
UKRB: moving beyond satisfying customers
2002 2003 2004 2005 2006 Dissatisfaction Satisfaction Advocacy
• Average sales time reduced, to below the European average
• Improved ability to cross-sell at account opening
• Roles clearly defined to staff to focus on sales and service
• Increased sales force training
• Non-customer facing work removed from branches
Improving our branch processes… …has helped drive sales andimprove efficiency
1 Indexed to 1002 Before provisions for customer redress
UKRB: driving growth and efficiency
UKRB cost:income ratio2
50%
47%
2005 2006
Sales per branch FTE1
100
142
2005 2006
42%
58%
Innovative product and service offers
Rebalanced sales mix Savings growth
UKRB sales volumes Growth(2005-2006)
Examples
• ‘Save the change’
• 8% Monthly Saver
• Guaranteed Investment Account
• Simplified OEIC range
• Protection for Life
1 includes Bank Savings, C&G Savings, Wealth Management and Current Accounts
UKRB: capturing our savings opportunity
62%
11%
BancassurancePVNBP
Deposits balance
net inflows1
47%
53%
35%
65%
Lending
Non-Lending
49%
51%
2003 2004 2005 2006
• Success in retail banking requires simultaneous delivery across multiple dimensions:
– Customer advocacy
– Sales and service culture
– Balanced and growing product mix
– Efficient, low-cost processes
• We have developed strong foundations to deliver consistently over time along all of these dimensions
UKRB: where we are focusing to drive future growth
What we did in 2006Our objectives
• Improved our bancassurance product range and sales effectiveness
• Focused on the most valuable IFA relationships and improved service
Leverage our distribution strength
Continue to develop better products
Improve capital management
I&I: accelerating growth
• Simplified bancassurance product range
• Launched ‘Protection for Life’
• Improved product profitability and capital efficiency
I&I: leveraging our distribution strength
1 Employee engagement score for I&I Division. Indexed to 1002 Scottish Widows (excluding General Insurance) CARE score. Indexed to 1003 Scottish Widows APE sales (to allow historical comparison). Indexed to 100
Customer satisfaction2Employee engagement1 Sales3
Increasingly motivated employees
Improved customer
satisfaction
100110
100
174
144IFA
Bancassurance100
128
2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006
Helping to drive higher
sales
1 End of year Defects Per Million Opportunities = Sigma for Scottish Widows. Measurement began in 20042 Scottish Widows IRRs. Indexed to 1003 I&I PBT per FTE. 2003-04 on a UK GAAP basis; 2005-06 on a full IFRS basis. Indexed to 100
Operational improvements
Improved product returns
DPMO1
Stronger profitability
3,467
10,834
100
136
IRRs2 PBT per FTE3
162
100
I&I: improved productivity delivering returns
2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006
• Making the most of our distribution reach– in the core bank franchises and the IFA channel
• Further tailoring products– to meet the needs of customers in different channels
• Further improving our productivity – both within I&I and through leveraging the manufacturing
capabilities across the Group
• Continuing to improve our capital efficiency– and product profitability
I&I: where we are focusing to drive future growth
• Built product and sales capability to deepen customer relationships
• Developed asset distribution capabilities
Grow the Corporate Markets business
• Continued strength in startups• Improved productivity and service• Simplified our offer and operations
Build on the growth momentum in Business
Banking
• Acted early on potential problems• Maintained high quality lending
portfolioMaintain strong asset quality
W&IB: continued growth momentum
What we did in 2006Our objectives
Broader product and sales
capabilitiesImproved sales mix Delivered more
productively
W&IB: driving Corporate Markets growth
• We have invested in extending our product capabilities– Leveraged
securitisation
– Structured deposits
• We have invested in building our specialist sales forces– e.g., Financial Markets
sales & structuring team
• Result: Corporate Markets cross sales up 48% in 2006
Income per FTE(indexed to 100)
100
114
Income(indexed to 100)
2005 2006
+9%
+24%100
115
38%
62%
41%
59%
Traditional lending, deposits and leases
Higher value-added products
2003 2004 2005 2006
W&IB: growing higher return Corporate Markets businesses
RWAgrowth
(2005-06)
Lowerreturn
Higherreturn
AFU
Large
FI
Global
FMD
Commercial
SAF
RAROC(2006)
Highergrowth
Lowergrowth
…redirecting capital towards higher returns
We are accelerating growth in our highest return businesses…
Corporate Markets RWAs
SST
HighRAROC
£56bn
£65bn
MediumRAROC
LowRAROC
31% 18%
41% 48%
28%34%
2005 2006
Improving productivity
Risingcustomer
satisfaction
Drivingcustomer
acquisitionGrowing
PBT
Cost:incomeratio4
PBT4 (£m)
61%
71%
136
247
Customersatisfaction2
Switcherrecruitment3
100
106
18,800
8,500
1 Business Banking employee engagement, indexed to 1002 Business Banking average CARE score, indexed to 1003 Number of switchers recruited each year4 2003-04 on a UK GAAP basis; 2005-06 on a full IFRS basis
Moremotivatedemployees
Employeeengagement1
100
W&IB: Business Banking’s model for continued success
112
2003 2004 2005 2006 2003 2004 2005 20062003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006
• Focusing on the most valuable customer segments– mid market - i.e. SME and mid-corporate clients
• Investing in a broader range of products and skills– to serve the increasingly sophisticated needs of these customers
• Deepening relationships with clients– deploying our broader product and skill range
• Continuing the shift to an ‘originate and distribute’ model
• Further improving back-office productivity– by leveraging group manufacturing skills
W&IB: where we are focusing to drive future growth
A business model for high quality, sustained growth
• Building strong revenue momentum
• Growing and deepening our franchises
• Enhancing efficiency
• Growing investment
• Strengthening capital disciplines
Summary: what these results indicate for the future
Forward looking statementsForward looking statements
This document is a summary only of certain information contained in the announcement dated 23 February 2007 and should be read in conjunction with the full text of the announcement.
This document 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 Registration Statement 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 document are made as of the date hereof, and Lloyds TSB Group undertakes no obligation to update any of its forward looking statements.