UK banking group Lloyds TSB said that its profit before tax on a continuing businesses basis fell by 19 per cent in the first half of 2008 to £1.573 billion ($3.11 billion) from a year before, reflecting the impact of £585 million of losses caused by market upheavals. If this figure is excluded, pre-tax profits rose by 11 per cent over the period to £2.16 billion.

On a statutory basis, pre-tax profit fell by 70 per cent to £599 million, the bank said.

New funds at the wealth management segment of the bank rose by 40 per cent in the first half from the same period a year before. Wealth management banking deposits increased by 25 per cent, the bank said in a statement.

Current account and savings balances within wealth management stood at £5.92 billion at 30 June, compared with £4.74 billion a year before.

“Wealth management continues to make good progress with its expansion plans to deliver an enhanced wealth management offer comprising private banking, open architecture portfolio management, retirement planning, insurance and real estate services,” the bank said.