from sub-prime market exposure relative to its peers, saw a large
drop in profits at its asset finance unit.
Compared with the previous year, pre-tax profit at asset finance
fell 47 per cent to £60m from tightened credit control and a
general slowdown in demand for consumer lending, the bank said.
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As a result, the asset finance unit reported a 10 per cent fall
in total income to £771m. Operating expenses improved by 5 per
cent, to £483m reflecting the shrinkage in new business written.
Impairment charges also declined 5 per cent to £228m from improved
collection measures.
Asset finance incorporates results of its fleet hire business,
LloydsTSB Autolease which Lloyds said had performed well.
Pre-tax profits at commercial banking meanwhile, rose 13 per
cent to £451m contributing to an overall wholesale and
international banking pre-tax profit of £1.4bn, down 12 per cent
from the previous year.
The wholesale business suffered impairment charges of £572m, a
combination of a £92m impact in market dislocation and a one-off
charge of £28m relating to the impact of the 2007 Finance Act on
the leasing business.
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