Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a1017228

Lloyds re-privatised as government sells last shares

The Treasury has sold its remaining stake in Lloyds Banking Group, recouping a £894 profit for taxpayers' on its bailout eight years ago.

 
Lloyds re-privatised as government sells last shares

The government has sold its last remaining shares in Lloyds Banking Group (LLOY) putting the bank back in to the private sector.

In response to the 2008 financial crisis the government ploughed £20.3 billion of taxpayers' money for a 43% in Lloyds following its doomed attempt to bail out rival HBOS.

In recent years as the bank's health has improved the Treasury has steadily sold down its stake with its holding falling below 2% in April.

It has recouped over £21.2 billion from the sales, leaving an £894 million profit for the taxpayer.

In a statement chief executive António Horta-Osório said: ‘Today the government has sold its last shares in Lloyds Banking Group, receiving more money than was originally invested. Six years ago we inherited a business that was in a very fragile financial condition. Thanks to the hard work of everyone at Lloyds, we’ve turned the group around.

'But the job is not done. We’re going to continue to use our strong position to help Britain prosper.'

Last month Lloyds Bank Group saw a 99% jump in statutory profit before tax. This came despite the firm announcing it was setting aside £550 million for compensation to business customers defrauded by its HBOS Reading office and a further provision for payment protection insurance (PPI) mis-selling. 

The re-privatisation of Lloyds' leaves the government with a 73% stake in Royal Bank of Scotland (RBS), which remains in a weaker condition.

Lloyds' revival and improved dividend prospects have attracted a growing number of investors and fund managers, most notably Neil Woodford, a former bank bear, who announced this month he had bought its shares in an overhaul of his UK equity income fund.

 

1 comment so far. Why not have your say?

JohnR

May 18, 2017 at 01:08

Inflation has averaged 2.6% since 2008

The tax payer has been mugged, again.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Greater Europe and Emerging Europe A comprehensive approach to investing in Europe


Making the most out of Europe's potential means seeing things differently. Learn more about how BlackRock's focused approach to investing in Europe helps investors unlock the continent's vast potential.

Watch Now

The Citywire Guide to Investment Trusts


In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:

Look up the shares

  • Lloyds Banking Group PLC (LLOY)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Royal Bank of Scotland Group PLC (RBS)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

The Accumulator: Brexit leaves FTSE trailing

by Daniel Grote on Jun 23, 2017 at 15:20

Sorry, this link is not
quite ready yet