Lloyds TSB has said it expects to report a pre-tax profit rise of at least ten per cent for the first half of the year, after making "strong progress" during the first six months of 2007.
The UK's fifth largest bank said a growth in sales levels, coupled with improvements to productivity and a reduction in losses from bad consumer debts, helped boost its performance compared to the first half of 2006.
In a trading statement the bank said its retail arm continued to experience "strong growth" in product sales, increasing its market share of new current account customers and performing well in the expanding savings and investment market.
Lloyds TSB said net new mortgage lending in the first half is also expected to be broadly in line with its share of stock.
The bank, which reported that consumer demand for unsecured lending remained "subdued" over the first half, said the number of bankruptcies and individual voluntary arrangements (IVAs) also fell over the period compared to the fourth quarter of 2006.
It added that the impairment charge for bad debts in its retail unit is also expected to be "broadly flat" compared to the first half of last year.
Meanwhile the bank reported that its programme of efficiency improvements is "progressing well" and is expected to result in savings totaling approximately £125 million in 2007.
Lloyds TSB group chief executive Eric Daniels said: "In addition to delivering our short-term financial goals, we are continuing to build and enhance our long-term customer franchises throughout the group.
"By doing so, we believe that we can deliver sustained double digit economic profit growth over time."
Mr Daniels added that the bank's management were "increasingly confident" about future prospects for boosting the company's earnings.
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