An approach has been made by Lloyds TSB for German bank Dresdner as the well known UK financial institution looks to maximise retail opportunities across Europe.
Lloyds TSB has ridden the credit crunch very well and as such it is in a very strong position compared with many others. This is why it is making tentative enquiries regarding the German bank, valued at around GBP6 billion. It has a keen interest in the German market generally as it is also looking at a couple of other big name German banks that are potentially for sale.
At the moment there is no immediate need for action so Lloyds TSB will seek the views of their shareholders as to their thoughts on how they wish to see their funds invested before making any further steps toward purchase.
The first half of 2008 has seen Lloyds TSB profits fall 70 percent compared with the same period last year, at GBP599 million.
The biggest cause of the reduced profit figures was a devaluation of the banks assets thanks to the global economic downturn. Taking this factor out of the equation Lloyds TSB has actually performed very well, especially in the retail banking sector. On this basis they actually increased their shareholder dividend, putting it up by 2 percent to 11.4 pence per share.
A Lloyds TSB spokesman, discussing the results, said that the bank was not directly associated with the American sub-prime market that collapsed so spectacularly and so has been quite well sheltered. The actual performance of the bank when their asset devaluations are removed has been an increase in pre tax profit of 11 percent, something that bodes very well for the future.
It has been suggested by the Alliance and Leicester that small business owners can make their lives easier by carefully selecting the best bank to suit them, rather than just going for the nearest or most advertised.
The Alliance and Leicester head of Business Banking has said that choosing the right deal on a business bank account can make a real difference in the day to day running of the organisation. More money can be earned in interest, there can be easier access to funds and good communications can ease stress levels.
With these points in mind it may come as no surprise to hear that the Alliance and Leicester has been named as the current account provider of the year for business banking, an award it has now received for the last 6 years.
