The Lloyds Banking Group, which owns Lloyds TSB Autolease and Lex, has issued its 2008 financial results.

It stated that its “profit before tax in asset finance decreased by 95% to £2 million reflecting the significant combined impacts of higher impairments and lower residual values in response to the deteriorating economic conditions”.

However, this came on the back of a rise in income, which was up by £62 million, or 9%, as a result of “continued margin improvement across the Black Horse consumer businesses and growth in Autolease, our contract hire fleet business”.

Costs increased by £57 million, or 13%, largely reflecting the impact of vehicle depreciation on the group’s enlarged contract hire fleet and exceptional residual value losses.

Costs were otherwise flat year-on-year.