The Government has announced shares in Lloyds Banking Group could be made available to the public by next March.
Chancellor George Osborne announced in January the proposed discount share sale of Lloyds would be delayed amid market turbulence.
But in a statement released yesterday, Treasury economic secretary Harriett Baldwin says the Government is still committed to offer shares to the public this financial year.
She says:”I am determined to build on this success by making Lloyds shares available to the public this year, so that we can build a share-owning democracy and continue to reduce our national debt.
“The Government is committed to launching a retail sale of Lloyds shares and to fully returning its stake to the private sector in 2016/17.”
Yesterday the Government announced it will receive a further dividend from Lloyds of £130m. This takes the total dividends received by the Government to £318m and the total recovered from Lloyds for taxpayers to over £16.8bn.
Hargreaves Lansdown senior analyst Laith Khalaf says the latest dividend reduces the Government’s break-even price on future sales by 2p to 70.5p.
He says:”At Lloyds, the job is almost done, and the bank is returning to business as usual, with the dividend tap being turned on in earnest this year. The retail share offer which is now planned for this tax year should be almost the final act in returning the bank to private ownership. Yesterday’s dividend is yet another step in the right direction for the bank.
“Things are not quite as rosy at Royal Bank of Scotland however, where US litigation and problems offloading Williams and Glyn mean it looks like it’s going to be 2018 at the earliest before the bank returns to something approaching normality.”