Lloyds saw profits fall last year

The company, which reported an 18% drop in profits last year, said net new mortgage lending was up to �2.2bn in the first quarter of 2003, from �0.7bn for the same period of 2002.

The UK's fourth largest bank said the growth in its mortgage and credit card lending was strong, despite a general downturn in consumer credit in the UK.

In the first three months of this year total loans and advances to customers were 3% ahead of the first quarter of last year at �138.6bn.

It paid out �2.2bn in new mortgages lending in the first quarter compared with �700m a year before - giving it an estimated 10.9% of the UK market.

Pensions and insurance

Meanwhile strong growth in both current account balances and deposits from international customers pushed the total level of customer deposits up 3.6% to �120.5bn in the first quarter.

It also said sales of life insurance, pensions and unit trusts in the first five months of the year were at similar levels to those seen at the same point in 2002.

The bank said last week that it was considering selling the National Bank of New Zealand after receiving approaches from potential buyers.

The group said on Monday that it was continuing to "consider its options" following the approaches but did not rule out retaining the business.

Lloyds said that it was continuing to keep a tight rein on expenditure, with growth in costs during the full year - stripping out the effects of acquisitions - likely to be below the rate of inflation.