British bank Lloyds TSB Group today said its underlying 2005 profits rose 4 per cent from a year earlier on a 20 per cent rise in wholesale and international banking profits.
Britain's fifth biggest bank reported 2005 pre-tax profit on a comparable basis of £3.47 billion, up from £3.32 billion in 2004.
Lloyds said its UK retail banking profit after provisions fell 7 per cent to £1.53 billion, as provisions for bad debts rose to £150 million from £100 million. It said consumers were having a harder time repaying unsecured loans.
Lloyds, Britain's biggest unsecured lender, said it expects a further deterioration in the retail credit environment in the first half of this year, but greater stability in the second half.
Lloyds said group costs remained under control, rising 4 per cent compared with income growth of 7 per cent - improving the ratio of costs to income to 52.7 per cent from 54.3 per cent.
It said profits in its wholesale or business and international banking unit rose 20 per cent from a year earlier to £1.50 billion, while profits in insurance and investments after provisions rose 3 per cent to £798 million.
The bank said its pension deficit stood at £2.91 billion at the end of 2005 and that it was considering methods of addressing the shortfall.