Lloyds share price dips as government sells off more shares

Jessica Morris
Follow Jessica
The taxpayer's stake in Lloyds is now below 16 per cent (Source: Getty)

Shares in Lloyds were trading flat this morning after the government announced it had hived off another load of shares in the state-backed bank.

The Treasury sold off around 691m shares, shrinking the government's stake by one per cent to 15.9 per cent.

The government has been whittling down its stake in the bailed-out bank since December - recouping billions for the Treasury's coffers.

Read more: Lloyds Banking Group share price dips as government slashes its stake

The latest sale comes after Chancellor George Osborne said during his Mansion House speech last month that he intended to sell the government's remaining £11.5bn holding in Lloyds over the coming year.

The Lloyds sale was announced alongside a wave of other sell-offs including a stake bailed-out bank RBS,

Read more: Chancellor George Osborne will start government RBS sell off as soon as possible

"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.

"This reflects the hard work undertaken over the last four years to transform the Group into a simple, low-risk and customer-focused bank that is committed to helping Britain prosper."

The taxpayer initially threw Lloyds a £20bn lifeline during the depths of the global financial crisis, enabling the bank to stay afloat, and leaving the government with a 41 per cent stake.

Related articles