FTSE turmoil hits Lloyds TSB

Banking giant Lloyds TSB showed it was suffering from a sharp rise in bad debt provisions today as “unprecedented” economic and stock market turmoil left first half profits only marginally above a year ago.

The Argentinian economic crisis and two high profile US corporate failures, certain to be Enron and WorldCom, saw the bank’s bad debt provisions rocket 48% to £479 million in the six months to June 30.