British bank Lloyds TSB said its 2007 underlying profit was on track to be in line with analysts' expectations and it would take a 'relatively limited' £200m sterling hit from its exposure to credit market problems.
Lloyds said it was firmly on track to deliver a good performance for the year and produce good economic growth.
It is expected to report a pre-tax profit of £4.13 billion this year, based on analysts' expections, up 11% from £3.71 billion in 2006.
The bank said it had written down the value of its asset-backed securities collateralised debt obligations by £89m and its structured investment vehicle capital notes by £22m.
Its corporate markets unit profit took a £90m hit from cutting the value of its trading portfolio.
