25th September 2015
Lloyds Banking Group is a ‘solid hold’ after the government sold another 1% of its stake.
The Treasury has announced that it has sold another 1% of its stake in the bank, reducing its hold to 11.98% from 12.97% a month ago.
The government ploughed £20 billion of taxpayer’s money into Lloyds at the height of the banking crisis and has so far raised £15 billion from selling shares in the company, with the money used to pay down the national debt.
Graham Spooner, investment research analyst at The Share Centre, said: ‘The government’s sale of its holding started in September 2013, 6% to institutions, and has been sold down at regular intervals ever since, with the program extended to 31 December.
‘Investors should be aware that the shares have been sold at a profit so far. Furthermore, there will be a discounted retail offer to the man on the street later on this year or more likely in the first half of 2016, returning Lloyds completely to the private sector.’
He said the banking sector remained ‘under pressure, as a result of regulatory issues and ahead of the next government sale, we currently recommend Lloyds as an increasingly solid ‘hold’’.
He added: ‘Since the recent market sell off, and with the share price down around 15%, investors should acknowledge that there have been two recent analyst upgrades.’