By Ian Walker

Lloyds Banking Group PLC (LLOY.LN) said Friday that it is selling its Irish residential-mortgage portfolio to Barclays PLC (BARC.LN) for 4 billion pounds ($5.4 billion), as part of its strategy to become a low-risk, U.K.-focused bank.

Lloyds said the deal is expected to complete in the second half of this year, and that it will use the money raised for general corporate purposes.

It said the bank will book a pretax loss of GBP110 million from the sale in its accounts for the first half.

The portfolio had gross assets of GBP4.3 billion, of which GBP0.3 billion are impaired, Lloyds said. In the year ended Dec. 31 the portfolio generated a pretax loss of GBP40 million.

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

(END) Dow Jones Newswires

May 18, 2018 02:33 ET (06:33 GMT)

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