Lloyds announces sale of £3.3bn of US securities at £540m profit

Lloyds has announced the sale of US residential mortgage backed securities in order to reduce the group's capital accretive non-core assets (release).

A profit of £540m is expected on the securities, as the £2.7bn portfolio will go for £3.3bn. The transaction is expected to complete in the first week of June. Of the £2.7bn portfolio, £170m has been sold to Goldman Sachs for £200m.

The bank's common equity tier 1 capital ratios will improve by 47 basis points (£1,400m capital equivalent) and the group's tier 1 capital ratio by 33 basis points (£950m capital equivalent).