Lloyds TSB expects IFRS hit to EPS

FTSE100 banking group Lloyds TSB says earnings per share will be reduced by
around 6% under international accounting standards, while pre-tax profits will
be 8% down.

Lloyds said it is expecting to deliver a ‘satisfactory’ trading performance
for the 2005 half-year with good earnings growth, but warned that IFRS would
reduce EPS and pre-tax profits.

The bank, however, said the changes were purely a result of changes to the
timing of income and expense recognition.

Lloyds added that it would ‘endeavour’ to provide information on the
company’s underlying performance, which would exclude the impacts of accounting
changes caused by IFRS.

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Fiona Westwood of Smith and Williamson.