Lloyds TSB is not following the examples of The Royal Bank of Scotland and HBOS in tapping its shareholders for more capital to shore up its balance sheet.
Reporting a relatively modest write-down of £387 million in the first quarter of this year, Tim Tookey, Lloyds TSB's acting finance director, said: "We are comfortable our capital position is pretty robust."
A decision, one way or the other, is expected from Barclays next week.
Mr Tookey said LloydsTSB has enough capital to meet its targets for organic growth "to keep us in a good position even going into 2011 and 2012".
Although the bank will continue to look for acquisition opportunities, he stressed: "We have pretty high standards. Just because the shoe is cheap doesn't mean it will fit well."
In a generally confident interim management statement, Lloyds TSB's chief executive, Eric Daniels, said: "The group remains firmly on track to deliver a good performance for the first half of 2008, excluding the impact of market dislocation and insurance related volatility.
"Our strong liquidity and funding capability have ensured that the group has continued to raise wholesale funding at leading market rates.
"This gives the group a competitive advantage and has enabled our corporate and retail relationship banking business to achieve strong levels of business growth in the first quarter of the year, capturing market share in a number of key areas whilst improving product margins.
"We expect to continue to deliver good levels of growth with high returns."
Not counting the write-downs and the impact of volatility on its insurance activities, Lloyds TSB said its profits rose by more than 10 per cent year-on-year in the first three months of 2008.
A deliberately lower risk strategy had limited the impact on its profits of the recent turbulence in financial markets.
Despite that, the stock market's response was wary. On a poor day for bank shares generally, Lloyds TSB led the way down to finish on 438p, a loss of 14.50p.
Sandy Chen, an analyst at Panmure Gordon, said the biggest question mark over Lloyds TSB was uncertainty over possible charges that might arise from "assets for sale" of £23.2 billion, as well as the possibility of further write-downs as on exposure to asset backed securities worth a total of £930 million, including indirect exposure to £200 million of investments linked to US sub-prime mortgages.
A more up-beat comment came from Alex Potter at Collins Stewart. He described the £387 million write-downs reported yesterday as "reasonably comforting" in the light of much larger hits taken by other banks.
Lloyds TSB said it "significantly" improved it market share of net new mortgage lending - after repayments - and that mortgage allocations have been strong, with considerably better margins.
General insurance is heading for "notable profit growth" in the first half of this year, largely because it does not expect last year's storm and flood claims to be repeated.