Lloyds sells US residential mortgage portfolio

31 May 2013

Lloyds Banking Group has sold a portfolio of US residential mortgage backed securities for a total of £3.3 billion ($5 billion).

This move has boosted the UK lender's capital by 1.4 billion pounds and has been done as part of the bank's overall restructuring scheme, Reuters reports.

Lloyds said in a regulatory statement on Friday (31 May) it will realise a pre-tax gain of around £540 million from the sale of the assets - which have been sold to a number of different buyers - as it continues to cut its nore-core assets.

The bank expects to complete the transaction in the first week of June.

Lloyds is currently undergoing massive restructuring in its global operations as it moves to become more competitive.

The company is now 39 per cent owned by the taxpayer as a result of the government bailing it out to tune of £20.5 billion.

By Claire Archer

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