Lloyds TSB Group plc -  UK Banks -  Category Directory

44-20-7626-1500
25 Gresham St.
London
EC2V 7HN, United Kingdom
www.lloydstsbgroup.co.uk 

Sales

$27.7 billion (U.S. dollars)

Business Description
Lloyds TSB Group is a leading UK-based financial services group, whose
businesses provide a comprehensive range of banking and financial services in
the UK and overseas. 

The operations of Lloyds TSB Group in the UK were conducted through
approximately 2,200 branches of Lloyds TSB Bank, Lloyds TSB Scotland plc and
Cheltenham & Gloucester plc at the end of December 2002. International business
is conducted mainly in the Americas, New Zealand and continental Europe. Lloyds
TSB Group's services in these countries are offered through a combination of
branches of Lloyds TSB Bank and subsidiary companies, principally The National
Bank of New Zealand Limited, New Zealand's second largest bank measured by
assets during 2002, and Losango, the Lloyds TSB Group's consumer finance
business in Brazil. Lloyds TSB Group also offers offshore banking facilities in
a number of countries.

Lloyds TSB Group's activities are organised into three segments: UK Retail
Banking and Mortgages, Insurance and Investments and Wholesale Markets and
International Banking. Services provided by UK Retail Banking and Mortgages
encompass the provision of banking and other financial services to personal and
small business customers, private banking, stockbroking and mortgages. Insurance
and Investments offers life assurance, pensions and investment products, general
insurance and fund management services. Wholesale Markets and International
Banking provides banking and related services for major UK and multinational
companies, banks and financial institutions, and medium-sized UK businesses,
including venture capital finance. It also provides asset finance and share
registration services to personal and corporate customers, manages Lloyds TSB
Group's activities in financial markets through its Treasury function and
provides banking and financial services overseas.

Wholesale Markets

Lloyds TSB Group's relationships with major UK and multinational companies,
banks and institutions, and medium-sized UK businesses, together with its
activities in financial markets, are managed through dedicated offices in the UK
and a number of locations overseas, including New York.

Treasury. Lloyds TSB Group is a leading participant in the Sterling money
market. It is also active in currency money markets, foreign exchange markets
and also in certain derivatives markets, primarily to meet the needs of
customers. It also plays a central role in the funding, cash and liquidity
management of Lloyds TSB Group.

Corporate. Lloyds TSB Group provides a relationship banking, financial and
advisory service to the corporate market place for customers with turnovers in
excess of GBP2 million, along with access to specialists in a number of banking
support areas, including financial institutions and trade finance, strategic
asset finance including large value lease finance, structured finance, share
registration, acquisition finance and capital markets. The Agricultural Mortgage
Corporation provides long-term finance for the agricultural sector, and through
Lloyds TSB Development Capital, venture capital finance is provided to
developing companies.

Asset Finance. Lloyds TSB Group's asset finance businesses provide
individuals and companies with finance through leasing, hire purchase and
contract hire packages. Hire purchase, or instalment credit, is a form of
consumer financing where a customer takes possession of goods on payment of an
initial deposit but the legal title to the goods does not pass to them until the
agreed number of instalments have been paid and the option to purchase has been
exercised. Through its invoice discounting and factoring subsidiary Lloyds TSB
Commercial Finance, Lloyds TSB Group provides working capital finance for
customers by releasing to the customer up to 90 per cent of the value of their
unpaid invoices, with the balance payable, after deduction of a service fee,
once the invoices have been settled. Invoice discounting differs to factoring in
that the customer retains control of the debt collection and the credit risk.
Specialist personal lending, store credit, small/medium ticket leasing and the
recently acquired Dutton-Forshaw motor dealership complete this group of
businesses.

International Banking

New Zealand. The National Bank of New Zealand Limited  provides a wide
range of banking services through some 160 retail branch outlets. NBNZ serves
retail customers' needs for current and savings accounts, credit cards, consumer
lending and home loans. NBNZ also has a substantial non-personal business
providing working capital, term lending, trade finance and treasury services to
the business and agricultural sector.

Europe. Lloyds TSB Group has private banking operations for wealthy
individuals outside their country of residence. The business is conducted
through branches of Lloyds TSB Bank located in Switzerland, Luxembourg, Monaco
and Gibraltar. There are also private and corporate banking operations in
Belgium, Netherlands, Spain and France.

Offshore banking. The Lloyds TSB Group's offshore banking operations
comprise offices in the Channel Islands and Isle of Man, providing a full range
of retail banking, private banking and financial services to overseas residents
and islanders, together with deposit services offshore for UK residents.

The Americas. Lloyds TSB Group has operated in the Americas for over 130
years and has offices in Brazil, Argentina, Colombia, Ecuador, Guatemala,
Honduras, Panama, Paraguay and Uruguay. In addition Lloyds TSB Group has private
banking and investment operations in the US. In Brazil, where Lloyds TSB Bank
has a corporate banking operation, Lloyds TSB Group also owns Losango, a
consumer lending operation providing three retail products: borrowing at the
point of sale in stores, unsecured personal lending and borrowing to fund new
and second-hand car purchases. The Losango lending business is mainly conducted
through Banco Lloyds TSB S.A., a locally incorporated subsidiary of Lloyds TSB
Bank. Lloyds TSB Bank also provides specialist banking and treasury products to
corporate clients in Brazil. In Argentina where Lloyds TSB Bank has 36 branches
and Colombia, where Lloyds TSB Bank's subsidiary Lloyds TSB Bank S.A. has 17
branches, Lloyds TSB Group provides corporate banking services, including trade
finance, working capital loans, import finance, term deposits and money
transmission. It also provides retail banking services through a network of
branches, including current and savings accounts, credit cards, personal loans
and mortgages.

Middle East and Asia. There are banking operations in Hong Kong, Singapore,
Tokyo, Malaysia and Dubai.

UK Retail Banking

Current accounts, savings and investment accounts, and consumer lending.
The retail branches of Lloyds TSB Bank offer a broad range of branded products
and Cheltenham & Gloucester provides retail investments through its branch
network and a postal investment centre.

Business banking. Small businesses were served by over 1,750 dedicated
business managers based in some 450 locations throughout the UK at the end of
2002. Customers have access to a wide range of tailored business services
ranging from traditional banking products through factoring, insurance and
investments to non-financial solutions to their business problems such as Debtor
Management service, providing legal support to help customers recover debts, and
Prospect Finder, providing customers with a tailored list of potential customers
for their business. Lloyds TSB Group is one of the leading banks for new
business start-ups with around one in five opening accounts with Lloyds TSB
Group.

Card services. Lloyds TSB Group provides a range of card-based products and
services, including credit and debit cards and card transaction processing
services for retailers. Lloyds TSB Group is a member of both the VISA and
MasterCard payment systems and is the third largest credit card issuer in the UK
with a 10 per cent share of outstanding card balances at 31 December 2002.

Cash machines. Lloyds TSB Group has one of the largest cash machine
networks of any leading banking group in the UK and, at 31 December 2002,
personal customers of Lloyds TSB Bank were able to withdraw cash, check balances
and obtain mini statements through some 4,200 cashpoint machines at branches and
external locations around the country. In addition, they had access to a further
some 37,000 cash machines via LINK in the UK and to cash machines worldwide
through the VISA and MasterCard networks.

Telephone banking. Telephone Banking continues to grow and Lloyds TSB Group
provides one of the largest telephony services in Europe, in terms of customer
numbers. At the end of 2002, some 3.2 million customers had registered to use
the services of PhoneBank and the automated voice response service PhoneBank
Express. Lloyds TSB Group's telephone banking contact centres handled some 46
million calls during 2002.

Internet banking. Internet Banking provides online banking facilities for
personal and business customers and enables them to conduct their financial
affairs without the need to use the branch network. Some 2 million customers
have registered to use Lloyds TSB Group's internet banking services.

UK Wealth Management. Private Banking provides a range of tailor-made
wealth management services and products to individuals from 40 offices
throughout the UK. In addition to asset management, these include tax and estate
planning, executor and trustee services, deposit taking and lending, insurance
and personal equity plan and individual savings account (ISA) products.

Mortgages

Cheltenham & Gloucester is Lloyds TSB Group's specialist residential
mortgage provider, providing a range of mortgage products to personal customers
through its own branches and those of Lloyds TSB Bank in England and Wales, as
well as through the telephone, internet and postal service, C&G TeleDirect.
Lloyds TSB Group also provides mortgages through Lloyds TSB Scotland and
Scottish Widows Bank. Lloyds TSB Group is the third largest residential mortgage
lender in the UK on the basis of outstanding balances.

Insurance and Investments

Life assurance, pensions and investments. Scottish Widows is Lloyds TSB
Group's specialist provider of life assurance, pensions and investment products,
which are distributed through Lloyds TSB Bank's branch network, through
independent financial advisors and directly via the telephone and the internet.
Before its acquisition in 2000, Scottish Widows distributed life assurance,
pensions and long-term savings products mainly through independent financial
advisors. Following the acquisition, the Scottish Widows brand became the sole
brand for Lloyds TSB Group's life, pensions, unit trust and other long-term
savings products, and Lloyds TSB Group extended the brand's product range to
Lloyds TSB Group's retail banking branch network.

In common with other life assurance companies in the UK, the life and
pensions business of each of the life assurance companies in the Lloyds TSB
Group is written in a long-term business fund. The long-term business fund is
divided into a With-Profits and a Non-Participating sub-fund.

With-profits life and pensions products are written from the With-Profits
Fund. The benefits accruing from these policies are designed to provide a
smoothed return to policyholders who hold their policies to maturity through a
mix of annual and final (or terminal) bonuses added to guaranteed basic
benefits. The guarantees generally only apply on death or maturity. The actual
bonuses declared will reflect the experience of the With-Profits Fund.

Other life and pensions products are generally written from the
Non-Participating sub-fund. Examples include unit-linked policies, annuities,
term assurances and health insurance (under which a pre-determined amount of
benefit is payable in the event of an insured event such as death). The benefits
provided by such linked policies are wholly or partly determined by reference to
a specific portfolio of assets known as unit-linked funds.

General Insurance. Lloyds TSB General Insurance provides general insurance
through the retail branches of Lloyds TSB Bank and Cheltenham & Gloucester, and
through a direct telephone operation and the internet. 

Scottish Widows Investment Partnership. Scottish Widows Investment
Partnership manages funds for Lloyds TSB Group's retail life, pensions and
investment products. Clients also include corporate pension schemes, local
authorities and other institutions in the UK and overseas. 
 

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