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The future of Scottish Widows was in the spotlight today after it emerged sales at the pensions and insurance division of Lloyds Banking Group have cratered.
The loss-making, part-nationalised banking giant today revealed new life and pensions sales are down 27% in the first nine months of the year.
Lloyds blamed “extremely difficult market conditions” and admitted it is having particular problems selling its products through financial advisers.
Many believe Scottish Widows may be bought by an industry consolidator like Resolution's Clive Cowdery.
Lloyds's general business of lending money is in the doldrums too. It said unsecured lending is flat “reflecting subdued customer demand”.
In home lending, where it has been responsible for one-in-four mortgages, it said gross mortgage loans for the nine months came in at £26 million against £18 million at the half year.
Lloyds chief executive Eric Daniels called it a “robust” performance and said the write-offs of bad loans and investments has now peaked.
