British bank Lloyds TSB said today it continued to trade satisfactorily in the three months to September 30th but warned it might have to make further provisions related to corporate lending.
Lloyds said it would take an additional £165 million (€260 million) charge after its life assurance unit, Abbey Life, which was sold by Lloyds in February 2000, mis-sold certain endowment-based and long-term savings products prior to its disposal.
"Many of the positive trends seen in our first half performance have continued into the third quarter," said chief executive Mr Peter Ellwood. "However, the economic outlook for the UK, as well as for all major world economies, remains uncertain," he added.
But Mr Ellwood said Britain's third-biggest banking group was "well positioned to withstand the impact of a potential further economic slowdown."
AFP