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Government reduces its stake in Lloyds Banking Group, sells more shares

Lloyds Banking Group

In its on-going effort to try and return the lender to full private ownership, the government has reduced its stake in Lloyds Banking Group to just below 8%. It means the taxpayer now owns 7.99% of the bank, down from the 43% share it held following the lender’s bailout at the height of the financial crisis.

Sales were suspended in January because of market volatility.

But UK Financial Investments (UKFI) said last month it would resume sales. UKFI manages the government’s stake. However, it abandoned plans for a share sale to the public, terming the move not sensible because of current market volatility. Instead, the government is now continuing to offload the holding to institutional investors.

“Today’s announcement shows the further progress made in returning Lloyds Banking Group to full private ownership and enabling the taxpayer to get their money back,” Lloyds said in a statement.

The bank received £20.5bn in total from the government during the financial crisis.

The government has recouped more than £17bn of that money since UKFI began selling the stake off in 2013.

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Paul

The author Paul