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While the banking giant reported this morning (30 July) profit for the first six months of 2008 before tax was 70 per cent less at £599m, compared with a profit of £1.99bn in first half of 2007, the lender was also able to boast its stake of the new mortgage lending market had surged.

In the first half of 2007 the lender snapped up 8.9 per cent of new mortgage business and 3.5 per cent in the final half of 2007. 

Overall, the lender said its market share of mortgages outstanding was currently 9 per cent. 

Eleanor Ross, media relations manager for Lloyds TSB and Cheltenham & Gloucester, said in the last six months the lender had been able to lend at a very good quality and the average loan-to-value for new business written in the first half of 2008 was 63 per cent, the same figure it was in 2007.

She said: "During a period of considerable turbulence for the financial services sector and a slow down in the UK economy, the Lloyds TSB Group continued to deliver a strong underlying performance in all its core businesses and is well positioned for a lower growth environment.

"Lloyds TSB believes that it has the right business model to perform well in the current environment, despite its caution on the outlook for the UK economy.  This is reinforced in its ability to capture market share and effectively cross-sell to its customers."