LYG Lloyds Banking Group Plc

(Adds statement from U.K. Treasury.)

By Ian Walker

LONDON--Lloyds Banking Group PLC (LLOY.LN) Monday said the U.K. government has lowered its shareholding in the bank to 1.41 billion shares, or about 1.97% of its issued share capital.

The U.K. government previously held 2.1 billion shares.

No price was disclosed for the share sale, which was conducted on Friday. The government is putting money raised from the sale toward reducing the national debt.

However, in a statement from the U.K. Treasury, Economic Secretary Simon Kirby said the government has now recovered over 20 billion pounds ($25.08 billion) of the GBP20.3 billion taxpayers injected into Lloyds during the financial crisis, once share sales and dividends received are accounted for.

Lloyds, the U.K.'s biggest retail bank, was bailed out by U.K. taxpayers during the financial crisis, with the government taking a 39% stake. The government started selling its shares in the bank in late 2013.

Last October, Philip Hammond, the U.K. Treasury chief, said the government would begin to sell its remaining 9.1% stake in Lloyds in a piecemeal fashion, after withdrawing a planned retail sale, attributing its decision to market volatility.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

April 03, 2017 03:04 ET (07:04 GMT)

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