Lloyds to sell Spanish retail operations to Banco Sabadell

UK lender Lloyds is to dispose of its loss-making Spanish retail and private banking operations in an effort to continue its strategy of 'rationalising' its overseas presence and ensuring best value for shareholders, the group said on Monday.

UK lender Lloyds is to dispose of its loss-making Spanish retail and private banking operations in an effort to continue its strategy of 'rationalising' its overseas presence and ensuring best value for shareholders, the group said on Monday.

Lloyds Bank International and Lloyds Investment Espana SGIIC, which had total assets of £1.5bn at March 31st, are to be sold to Spanish peer Banco Sabadell for a mix of shares and cash.

The businesses being sold consist mostly of retail mortgages and deposits, with a large portion of non-resident clients.

Lloyds is to hold on to its corporate banking operations in Spain serving business clients.

Under the agreement, Lloyds will receive 53.7m shares in Sabadell, equal to a 1.8% stake valued at €84m (£72m). An additional €20m (17m) will be paid within five years subject to future mortgage book margins.

The bank said that cash proceeds from the sale will be used for "general corporate purposes".

The Spanish businesses reported a loss of around £43m in 2012, which included a 90% jump in the impairment provision as a percentage of impaired loans.

"The sale of the business is currently expected to lead to a loss on disposal of approximately £250m in the group's accounts," Lloyds said.

Recommended

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021