The share price of Lloyds has risen this morning (May 27th) after the bank announced it is to sell a significant stake in TSB on the London Stock Exchange.
Stocks in Lloyds were up after the bank said a 25 per cent stake in TSB is to be sold on the index in the coming months.
Antonio Horta-Osorio, Lloyds Banking Group chief executive, stated that the initial public offering (IPO) will be an "important step" for the bank as it seeks to meet its commitment to the European Commission.
He said: "TSB has a national network of branches, a strong balance sheet and significant economic protection against legacy issues."
Shares in TSB are now expected to be sold on the London Stock Exchange in the next few weeks and some commentators have suggested the bank could be valued at £1.5 billion.
Lloyds and TSB split in the last few months. Lloyds had to be bailed out by the government after it was on the brink of collapse in the wake of the global financial crash.
A bid from the Co-operative Bank for TSB also collapsed as a result of the bank realising it had a large gap in its finances and could no longer afford to pursue a purchase of the rival company.
Lloyds has had a long road back to success, but the bank's financial position now appears to be on a firmer footing and the share price of the firm has performed well in the last few months.
The IPO for TSB is likely to be seen as the latest sign Lloyds has put the worst of its financial problems behind it. Announcing its latest results earlier in the month, Lloyds stated that its underlying pre-tax profits stood at £1.8 billion between January and March.
At 08:29 BST this morning, the share price of Lloyds was up by 0.87 per cent, although stocks in the bank had been over one per cent up earlier in the day on the London Stock Exchange.
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