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.