Extensive franchise in U.K. banking, insurance, and investment markets; Strong profitability of banking and general insurance businesses; Stable asset quality; and Solid funding and liquidity profiles. While regulatory capitalization has strengthened, core capitalization is weak by Standard&Poor's measures when adjusted for capital allocated to the significant insurance subsidiaries; Organic revenue growth has historically been slow, but has been made a greater strategic priority; and The acquisition of life assurer Scottish Widows PLC at the peak of the equity market has diluted overall returns and caused greater earnings volatility. The ratings on Lloyds TSB Bank PLC (LTSB) reflect its excellent business position, the dilutive effect of disappointing life assurance earnings on its strong banking profitability, and its stable asset
