BT's pension fund deficit widened by over £5bn (€7bn) in the year ending March 2003 under the FRS17 accounting standard, but analysts were relieved by results of a traditional scheme valuation and strong fourth-quarter corporate results.

The UK telecoms giant posted a shortfall of £6.3bn net of tax in its main defined benefit pension fund under the FRS17. The deficit is one of the largest yet recorded under the accounting standard, which has exposed shortfalls in almost all pension funds as equity markets tumbled.