Latest sell-off takes government’s stake in Lloyds below 3 per cent

The UK Government has today reduced its stake in Edinburgh-based Lloyds Banking Group to less than 3 per cent after selling further shares in the bank.

The UK Treasury now holds a 2.95 per cent stake in the bank it bailout at the height of the financial crisis in 2008.

The £20.5 billion rescue had left the UK taxpayer with a 43 per cent share of the banking group which includes Bank of Scotland.

UK Financial Investments Limited (UKFI), which manages the government’s stake, resumed share sales in October, having halted them for almost a year due to market turbulence.

It is expected the Government will now sell out of the bank this year.

Antonio Horta-Osori, chief executive of Lloyds, said in a statement: “Today’s announcement moves Lloyds another step closer to full private ownership, and we are pleased that the group’s strong financial performance has kept us on track to return more money to taxpayers than was put in.”

Lloyds Banking Group’s share price was up 0.9 per cent at 68.45 pence in early trading on Wednesday.