Dull like a Bank is Supposed to be

Sorry for all the reports on banks but since the financial market got into such a mess last year keeping a watch on the banks seems the best way to see if we are over the worst. Lloyds TSB reported today and almost surprised by the lack of bad news to talk about. Indeed from what I have seen so far the analysts haven't much to say about them either. Treasury writedowns from market "dislocation" were immaterial at only £280m. On the face of it that might seem a lot but would normally hardly be worth writing about compared to profits of £4bn. There were many positives including profits up, EPS +17% and 5% on the dividend.
Lloyds is mostly UK centric, having disposed of it's International Operations a few years ago, and seen as a somewhat low growth and dull business. But that is exactly how a bank is supposed to be. Lloyds has stuck to the traditional domestic banking market with a conservative business model e.g no direct exposure to US sub-prime, strong capital position and efficient funding. Now the number one provider of current accounts, cards and personal loans, management didn't have grand things to say about strategy other than serving customers better, maintaining relationships through the cycle, cross selling, controlling costs and maintaining quality of business. And good for them.
Interestingly Lloyds, with all their sophisticated analysis of customer spending patterns and systems to detect borrower stress, do not note any adverse trends. UK Retail loan impairments were down and there was a reduction in customer insolvencies. Recession? What Recession?
The dividend yield is now 7.8%. On that basis why put money in the bank when you can get a much better return from owning it!