Eric Daniels, the chief executive of Lloyds TSB, and the rest of banking giant's board of directors yesterday could hardly contain their self-satisfaction amid the global credit crunch that had rocked almost everyone's world but theirs.

"We look forward to 2008 against a background of global economic slowdown," Daniels, the American-born chief executive who was lured to Lloyds in 2001 with a controversial £1.3m "golden hello", told around 600 shareholders at yesterday's annual meeting in Glasgow.

"But we expect to continue to deliver good growth with the high returns you've come expect."

Clearly pleased with himself, Daniels added: "We do not participate in the US sub-prime mortgage market."

The AGM lacked the fanfare of past annual meetings - which have been visited by a pantomime horse - but the calm was fitting yesterday, because caution was the order of the day.

Earlier this week, Lloyds TSB said it had no need to join the queue of banks seeking to raise billions of pounds from shareholders after unveiling relatively modest write-downs in respect of the credit crunch, which has hammered bigger rivals.

The bank, the UK's fifth- biggest, said it had reaped the rewards of a low-risk strategy in the first quarter when underlying pre-tax profits rose by more than 10% compared with the same period last year.

The growth rate was calculated before accounting for £387m write-downs in respect of the damage caused by financial market turbulence.

However, with the writedowns dwarfed by those made by the likes of Royal Bank of Scotland, the directors said Lloyds TSB, which also owns Scottish Widows, was well placed to deal with the turbulence which has hit bigger fish hard.

And shareholders yesterday appeared delighted that their bank had come through the credit credit crisis only mildly scathed.

One elderly shareholder took to the microphone point in the hall and declaimed: "I want to congratulate you on your conservative approach to running the company. These are hard times.

"I'm also pleased there will be no value-destroying rights issues."

Following a round of applause, the shareholder added: "I'm a bit reluctant to pay you compliment, because the last time I gave a compliment it was to the board of Northern Rock."

The AGM resounded in both laughter and relief.