Threadneedle: Lloyds Interim Results

UK Growth & Income Fund Manager and Banking Sector Specialist, Chris White, gives his views on the Lloyds' Interim Results: "There was fuel for the bulls and the bears in today's results for Lloyds TSB.

"Operationally, Eric Daniels and the management team have done a terrific job. Lloyds is in robust health which was highlighted by revenue growth of 9%, underlying profit growth of 11% and a mortgage market share in H1 2008 of 24%. However, despite a strong total capital ratio and AAA Moodys credit rating, the core equity tier 1 ratio looks a little light at 6.2% for where we are in the economic cycle.

"Overall, it remains our favoured UK domestic bank due to the conservative approach to lending and the ability to compete in a very difficult economic environment."