Lloyds begins TSB share sale

Banking group expected to raise about £160m from second tranche of shares

Lloyds Banking Group will be left with a 50% stake in its TSB banking arm after kickstarting a share sale.

The bailed-out bank sold off 38.5% of TSB in June, when shares were priced at 260p each, and intends to sell a further 11.5%. TSB shares closed on Thursday at 280p, suggesting Lloyds would raise about £160m.

The sale of the TSB shares was kickstarted as Lloyds revealed it had given £1.2m shares to 11 of its most senior staff – including chief executive António Horta-Osório –` under new payments made to sidestep the EU bonus cap.

All the major banks are handing top staff “allowances” in shares to get round the bonus cap, which restricts bonuses to one times salary unless shareholders approve payouts of twice the size of a salary.

Lloyds, in which the taxpayer has a 24% stake, is spinning out 631 branches under the TSB brand because of conditions imposed at the time of its £20bn bailout. The second tranche is being sold now because a 90-day period between sell-offs has elapsed since the previous sale, and because of the no vote in the Scottish independence referendum, which TSB and Lloyds had said would cause them to move business from Scotland.

The branches were supposed to be have been sold by now but the process has been delayed because of the failed attempt to sell them to Co-operative Bank. Royal Bank of Scotland, 81% owned by the taxpayer, has to sell more than 300 branches under the terms imposed by the EU at the time of its £45bn bailout. Those branches are to be branded Williams & Glyn – a name last seen on the high street 30 years ago.

Contributor

Jill Treanor

The GuardianTramp

Related Content

Article image
TSB returns to the high street as Lloyds splits its branches

Lloyds returns 631 branches to bank brand swallowed up in 1993 merger and drops TSB moniker

Rupert Jones

08, Sep, 2013 @5:00 PM

Article image
Lloyds could axe 9,000 more banking jobs under its three-year plan
About 45,000 roles have already been axed since Lloyds TSB rescued HBOS during the 2008 banking crisis

Jill Treanor

22, Oct, 2014 @7:42 PM

Article image
Lloyds' new boss to speed up asset sales
Taxpayer-backed Lloyds Banking Group is putting further UK branch closures on hold as its new boss António Horta-Osório completes a strategy overhaul

Tom Bawden

01, Mar, 2011 @5:07 PM

Article image
TSB to float next month with teaser for small investors

Lloyds expects to beat 'flotation fatigue' by offering one free share for every 20 bought by retail investors

Julia Kollewe

27, May, 2014 @11:00 AM

Article image
Lloyds chief will urge banks to stop complaining about ringfencing
Banking group’s CEO António Horta-Osório expected to give speech urging industry to move on, following recent criticism by head of BBA

Jill Treanor

18, Jun, 2015 @12:20 AM

Article image
Lloyds profits surge to £2bn as bad debts fall
Fall in provisions on bad loans and no extra provision for PPI mis-selling helps first-quarter profits rise sharply from a year ago

Jill Treanor

30, Apr, 2013 @3:34 PM

Article image
Lloyds to re-start sales of fee-paying accounts a year after withdrawal
Bank to reintroduce slimmed down range of packaged accounts in new year

Rupert Jones

16, Dec, 2013 @10:30 PM

Article image
Lloyds share sale attracts first-time investors, says Hargreaves Lansdown
One in eight of the 170,000 people who registered interest with financial firm are first-time investors

Jill Treanor

26, Oct, 2015 @12:01 AM

Article image
TSB sell-off dents Lloyds profits
Bank takes £745m hit on branch sale but shares rise after announcement of no further provision for PPI compensation

Jill Treanor

01, May, 2015 @4:07 PM

Lloyds boss in line for bigger bonus as government makes £60m on share sale
António Horta-Osório could be in line for more than £2.2m as chancellor claims part selloff is sign of improving economy

Jill Treanor

17, Sep, 2013 @7:20 AM