Lloyds TSB holds dividend as profits take 18% hit

LLOYDS TSB Group plc held its final dividend yesterday despite an 18% profit drop, but shares in Britain’s fourth-biggest bank lost ground as investors fretted about its future dividend policy.

The worst stock market slump in 30 years has hammered global financial stocks, raising fears about the capital strength of banks and insurers. Lloyds warned of tough market conditions as it unveiled lower profits that were just below market consensus.

The bank kept its final dividend at 23.5 pence, however, for an increase of 1.5% in the total 2002