Lloyds to sell off 25% of its TSB business in June

Lloyds Banking Group has announced a plan to sell off 25% of its revived TSB business in a stock market flotation at the end of June.

At least some of the shares should be made available to the public, according to the bank.

This announcement comes as it reported a 22% rise in underlying first quarter pre-tax profit to £1.8bn ($3bn).

Chief executive António Horta-Osório said: "We are supporting and benefitting from the UK economic recovery and are delivering better underlying profitability as well as improved returns for shareholders, from a stronger, lower risk balance sheet."

Lloyds must sell the TSB business, valued by analysts at around £1.5m`, as a condition of its £20.5bn bailout in 2008.

Originally, the bank had planed to sell assets to the Co-op Group’s banking arm but, after the deal collapsed last year, Lloyds decided to hive off 632 branches and to revive TSB as a separate brand, 18 years after the two banks merged.

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