Lloyds TSB upbeat despite profits slide

Lloyds TSB added to nerves at the start of the bank reporting season today after it revealed more credit crunch losses but assured its underlying business was strong.

Britain’s fifth largest bank posted a 70% slide in half-year pre-tax profits to £599m (€762m) after a £585m (€744m) hit from the credit turmoil and investment writedowns at its insurance arm.