British bank Lloyds TSB has met analysts' expectations with an 8% rise in underlying annual profits, as UK income growth accelerated in the second half of the year and it kept a tight control on costs.
Lloyds, Britain's fifth biggest bank, said its profit before tax and volatility was £3.7 billion in 2006, up from £3.45 billion in 2005 and in line with forecasts.
The bank's 2006 bad debt impairment charge jumped 20% to £1.56 billion as borrowers struggled to pay back unsecured loans, but Lloyds said it had seen signs of stabilisation in its consumer lending portfolio.
