This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.independent.co.uk/news/business/news/lloyds-banking-group-eyes-tsb-float-in-june-9310682.html

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Lloyds Banking Group eyes TSB float in June Lloyds starts countdown to TSB sale as profits rise
(1 day later)
Lloyds Banking Group is poised to launch the share sell-off of its £1.5 billion TSB business before the end of June. 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.
Lloyds' chief executive Antonio 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 would include a retail offer. 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.
TSB left the stock market in 1995 when it became part of Lloyds. Its sell-off was ordered by the European Commission after Lloyds’ £20 billion taxpayer bailout. An initial prospectus could come late this month with the share sale running through June.  “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.
The Treasury sold £4.2 billion of Lloyds shares at 75.5p in March cutting its stake to 24.9 per cent. 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.”
It has a 90 day lock in — to June 23 — before it can sell more shares but Horta-Osorio said that the bank was “always co-operative with the Government” over further sales. 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.
Lloyds’ headline profits grew by 22 per cent to £1.8 billion in the first three months of the year reflecting a growing loan book, lower bad debt write-offs and smaller costs. There were also no extra charges for mis-selling in the quarter. 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 shares rose 2.6p to 78p. 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.