Lloyds TSB says solid mortgage and pension sales helped it to a satisfactory first half, but its shares have eased on lingering concerns over costs and dividends.
The bank, struggling to convince investors it can maintain one of Britain's most generous dividend payouts, said mortgage lending rose in its first quarter and pensions sales were flat, defying tough conditions in both markets and outperforming results reported by rival Abbey National last week.
But Britain's biggest current account provider also confirmed analysts' fears it would not be able to cut costs this year, though they would be kept below the level of inflation.
There was also no fresh news on the bank's plans for National Bank of New Zealand in its first trading announcement since Chief Executive Eric Daniels took up his post.
Lloyds said last week it might sell New Zealand's biggest bank, which could strengthen its capital ratios and protect its dividend, the highest among Britain's banks.
This morning, Lloyds TSB shares were down 0.9 per cent at 454 pence, just weaker than a 0.6 per cent fall on the British blue-chip index.