Govt set to announce plans to sell more of its stake in Lloyds

Chancellor George Osborne will this week confirm plans for another public sale of shares in Lloyds Banking Group.

According to Sky News, the Chancellor will refer to the plans in this week’s autumn statement but will not reveal the full details or when it is likely to take place.

In September, the Government raised £3.2bn through the sale of around 6 per cent of its stake in the state-backed bank, reducing its share to 32.7 per cent.

At the time of the last lot of share sales, UK Financial Investments – the company that manages the Government’s shareholdings in bailed-out banks – and the Treasury agreed not to sell any more shares in the bank for 90 days. This means the next sale will not take place until 19 December at the earliest.

For the first nine months of the year, Lloyds reported a pre-tax profit of £1.7bn, compared with a loss of £607m in the same period last year, while gross mortgage lending hit £25.2bn, compared to £19bn in the first nine months of 2012.