A lopsided alternating direction iteration (LADI) method and an induced
block diagonal preconditioner for solving block two-by-two generalised saddle point
problems are presented. The convergence of the LADI method is analysed, and the block diagonal preconditioner can accelerate the convergence rates of Krylov subspace iteration methods such as GMRES. Our new preconditioned method only requires a solver for two linear equation sub-systems with symmetric and positive definite coefficient matrices.Numerical experiments show that the GMRES with the new preconditioner is quite effective.