Taxpayer stake in Lloyds Banking Group cut below 1%
This article contains affiliate links. We may earn a small commission on items purchased through this article, but that does not affect our editorial judgement.
UK Financial Investments, which manages the stake in the Bank of Scotland and Halifax owner, cut its holding by about one percentage point to 0.89 per cent.
• READ MORE: Lloyds defies ‘challenging’ market to double profit
Advertisement
Hide AdAdvertisement
Hide AdLast week, Chancellor Philip Hammond said the government has recouped the £20.3 billion used to bail out Lloyds during the financial crisis.
At its peak, Lloyds was 43 per cent owned by the state.
More than £20.4bn has now been returned to government coffers since the lender’s bailout. This includes about £500 million in payouts to shareholders since the bank resumed paying dividends in 2014 as it has returned to profit growth in recent years.
• READ MORE: Royal Bank of Scotland posts first profit since 2015
The taxpayer’s final stake in Lloyds is expected to be sold off in the coming weeks, with any profits being used to pay down the deficit.
The announcement comes a week after the Chancellor admitted that the government is prepared to sell its 72 per cent stake in Royal Bank of Scotland at a loss to the public purse.