Lloyds back in private hands after a decade

BANKING: Final step in ‘rescue and rejuvenation’ hailed

Lloyds Banking Group has been fully returned to private hands nearly nine years after the Government bailed it out at the height of the financial crisis.

The Government’s final tranche of 638.4 million Lloyds shares have been sold, marking a milestone for the lender and closing a troubled chapter for the group.

Lloyds said the taxpayer had made a profit of £894 million on the original £20.3 billion pumped in as part of its rescue.

Antonio Horta-Osorio, the chief executive of Lloyds, said: “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’.”

Chairman Lord Blackwell said the sale of the last 0.25% stake “marks the final step in the rescue and rejuvenation of Lloyds Banking Group”.

“The combination of our strong financial performance and the progress we have made towards our strategic priorities has enabled over £21.2bn to be returned to the Government, more than repaying the amount that taxpayers invested,” he said.

The bank pledged to continue supporting households and businesses, including promising to create 8,000 apprenticeships by 2020, lend £10bn to first-time buyers and £2bn to small firms this year, as well as helping 100,000 start-ups get off the ground.

At the peak, Lloyds was 43% owned by the state after its bailout during the banking crisis.

The Government mulled plans to shed its remaining stake through a retail sale, but former chancellor George Osborne halted the attempt in January last year, blaming market turbulence.

Current Chancellor Philip Hammond instead favoured a drip-feed sale to institutional investors.

CEO Antonio HortaOsorio said the group has been turned around.