Crunch hits profits at Lloyds TSB

Banking giant Lloyds TSB today said credit crunch losses and woes in its insurance business wiped 70% off first half pre-tax profits.

The group reported interim profits of £599m (€761m) against £1.99bn (€2.5bn) in the first half of last year, with a further £585m (€743m) hit from the credit turmoil and investment writedowns in its insurance arm.