Lloyds starts countdown to TSB sale as profits rise

Treasury sold £4.2 billion of Lloyds shares in March cutting its stake to 24.9%

Lloyds is poised to launch the share sell-off of its £1.5bn TSB offshoot in the next eight weeks as both banks benefit from the reviving economy.

As Nationwide reported that house prices have risen 10.2 per cent over the past year – the fastest growth since 2007 – Lloyds’ chief executive, Antonio Horta-Osorio, said he was not worried about a housing bubble leaving the bank over-exposed.

 “We have basically two geographic areas, London and the South-east, where prices have been increasing significantly,” he explained. “But a significant proportion of transactions are cash.

Then you have the wider UK where we have done 80 per cent of our Help to Buy mortgages. Prices there are beginning to rise faster than inflation but are still well below 2007 levels. Consumers are continuing to repay mortgages and we think the net stock of mortgages will increase from 0.7  per cent last year to 2 per cent this year. That is in line with inflation, which is good.”

Mr Horta-Osorio said for the first time that Lloyds wants to sell “a minimum of 25 per cent” of TSB and that, market conditions permitting, this will include a retail offer. TSB left the stock market in 1995 when it became part of Lloyds. Its sell-off was ordered by Brussels following Lloyds’ £20bn taxpayer bailout. A prospectus could come late this month, with the share sale running through June.

The Treasury sold £4.2bn of Lloyds shares at 75.5p in March, cutting its stake to  24.9 per cent. It has a 90-day lock-in, to 23 June, before it can sell more shares, but Mr Horta-Osorio said it was “always co-operative with the Government” over further sales.

Lloyds’ headline profits grew 22 per cent to £1.8bn in the first three months of the year, reflecting a growing loan book, lower bad debt write- offs and lower costs. There were also no extra charges for mis-selling. The shares rose  6 per cent to 79.5p.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Customer Relations Officer

£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Jemma Gent: Project Coordinator

£12 - £15 Hourly Rate: Jemma Gent: In this role you will report to the Head of...

Recruitment Genius: Evening Administrator

£8 per hour: Recruitment Genius: This Pension Specialist was established early...

Day In a Page

Homeless Veterans campaign: Donations hit record-breaking £1m target after £300,000 gift from Lloyds Bank

Homeless Veterans campaign

Donations hit record-breaking £1m target after huge gift from Lloyds Bank
Flight MH370 a year on: Lost without a trace – but the search goes on

Lost without a trace

But, a year on, the search continues for Flight MH370
Germany's spymasters left red-faced after thieves break into brand new secret service HQ and steal taps

Germany's spy HQ springs a leak

Thieves break into new €1.5bn complex... to steal taps
International Women's Day 2015: Celebrating the whirlwind wit of Simone de Beauvoir

Whirlwind wit of Simone de Beauvoir

Simone de Beauvoir's seminal feminist polemic, 'The Second Sex', has been published in short-form for International Women's Day
Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

Why would I want to employ someone I’d be happy to have as my boss, asks Simon Kelner
Confessions of a planespotter: With three Britons under arrest in the UAE, the perils have never been more apparent

Confessions of a planespotter

With three Britons under arrest in the UAE, the perils have never been more apparent. Sam Masters explains the appeal
Russia's gulag museum 'makes no mention' of Stalin's atrocities

Russia's gulag museum

Ministry of Culture-run site 'makes no mention' of Stalin's atrocities
The big fresh food con: Alarming truth behind the chocolate muffin that won't decay

The big fresh food con

Joanna Blythman reveals the alarming truth behind the chocolate muffin that won't decay
Virginia Ironside was my landlady: What is it like to live with an agony aunt on call 24/7?

Virginia Ironside was my landlady

Tim Willis reveals what it's like to live with an agony aunt on call 24/7
Paris Fashion Week 2015: The wit and wisdom of Manish Arora's exercise in high camp

Paris Fashion Week 2015

The wit and wisdom of Manish Arora's exercise in high camp
8 best workout DVDs

8 best workout DVDs

If your 'New Year new you' regime hasn’t lasted beyond February, why not try working out from home?
Paul Scholes column: I don't believe Jonny Evans was spitting at Papiss Cissé. It was a reflex. But what the Newcastle striker did next was horrible

Paul Scholes column

I don't believe Evans was spitting at Cissé. It was a reflex. But what the Newcastle striker did next was horrible
Miguel Layun interview: From the Azteca to Vicarage Road with a million followers

From the Azteca to Vicarage Road with a million followers

Miguel Layun is a star in Mexico where he was criticised for leaving to join Watford. But he says he sees the bigger picture
Frank Warren column: Amir Khan ready to meet winner of Floyd Mayweather v Manny Pacquiao

Khan ready to meet winner of Mayweather v Pacquiao

The Bolton fighter is unlikely to take on Kell Brook with two superstar opponents on the horizon, says Frank Warren
War with Isis: Iraq's government fights to win back Tikrit from militants - but then what?

Baghdad fights to win back Tikrit from Isis – but then what?

Patrick Cockburn reports from Kirkuk on a conflict which sectarianism has made intractable