Lloyds to sell off Irish commercial loan portfolio in early 2013

Lloyds Banking Group has announced that it is selling a portfolio of Irish commercial real estate loans as part of its strategy to de-risk its balance sheet and reduce its non-core assets.

The portfolio will sell for £149m, and is expected to be completed in the first quarter of 2013. The sale proceeds will be used for general corporate purposes.

The banking giant said that portfolio generated losses of £202m in the 12 months ended December 31st 2011 and revealed the gross assets subject to the transaction are £1,466m.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

In a statement the company said: "The transaction is not expected to have a material impact on the group due to the significant impairment provisions held against the portfolio, which are higher than the average across the Irish wholesale book because of the particularly distressed nature of these assets."

The share price was 2% higher by the early afternoon.

NR