Strong position in U.K. retail banking and leading positions in U.K. commercial and corporate banking, and insurance. Improving cost efficiency. Government support, which includes a 39% common equity stake. Credit performance remains worse than most peers. Capital build process could be susceptible, in particular, to higher-than-expected provisions for customer redress. Still to complete EC-mandated business disposal. We believe that above market average income growth may prove to be difficult given the loan-book bias to U.K. mortgages. The negative outlook on Lloyds TSB Bank PLC reflects two issues: The negative "trend" that we have assigned to U.K. banking industry risk. Our relative view of Lloyds' capitalization. We could lower the ratings if we lower our assessment of U.K. industry risk or
