Safe is better in Banking February 27th, 2008

Lloyds TSB reported a 6% rise in profits to £3.7bn in 2007, compared with £3.6bn in 2006, despite the credit crunch. It attributed its successful performance to ‘good old fashioned banking’ an approach that smaller banks such as Northern Rock and Bradford & Bingley should have taken notice of. Lloyds share price rose 5% on the back of this news.

Lloyds is keen to reinvest some of these profits and is on the lookout for buying opportunities created by the uncertainty in the markets. The money will undoubtedly be spent wisely as Lloyds is seen as a conservative player in the banking sector. With returns like these, Lloyds has proved that this is the best approach to adopt in times of trouble.