Lloyds says it is on track to make double digit profits

Lloyds TSB says it is set for double digit growth in profit for the first half of the year.

It says tight cost controls, flattening bad debt charges, and strong sales of insurance and investment products have helped it to achieve this.

In a trading statement, Lloyds said cost discipline had resulted in a ‘substantial’ improvement in its cost to income ratio, and reiterated its target of reducing expenses by 125m this year.

Eric Daniels chief executive at Lloyds TSB, says: “The group remains firmly on track to deliver a good trading performance for the first half of 2007 and, as we look to the future, we are increasingly confident in the group’s earnings growth prospects.