Government sells off more Lloyd shares, taking its stake below 14 per cent

Jessica Morris
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The sale takes the the state's stake below 14 per cent (Source: Getty)

The government has sold off another one per cent of its shares in bailed-out bank Lloyds, taking the taxpayer's stake below 14 per cent.

The latest sale means so far it's raised nearly £14bn for the Treasury's coffers through a trickle of share sales, which were initially announced in December.

"It’s fantastic news that we’ve sold more shares in Lloyds Bank, taking the total recovered to almost £14bn," chancellor George Osborne said.

"I am determined to build on this success, and to continue to return Lloyds to the private sector and reduce our national debt."

Read more: Lloyds profits miss expectations as PPI bill surges

Last week Lloyds posted figures showing pre-tax profit rose 28 per cent in the six months to the end of June - although that figure was below analysts' expectations. It also revealed that it's set aside £1.4bn to cover the cost of mis-selling payment protection insurance (PPI), bringing its total bill for PPI to £13.4bn.

The government was forced to throw Lloyds a £20bn lifeline during the depths of the global financial crisis in 2008, enabling the bank to stay afloat, and leaving the government with a 41 per cent stake.

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