Lloyds selling out of Japan

Lloyds Banking Group has taken the first step to getting out of Japan after announcing the sale of its remittance business in the country.

The group, which is 43% owned by the UK taxpayer, is selling GoLloyds to Shinsei Bank

The total assets subject to the transaction with Shinsei Bank total £1.5m as of the end of 2011, it said.

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The group's presence in Japan includes a branch conducting remittance and deposits business.

After it sells the remittance business, Lloyds said it intended to run down its fixed term deposit book in the Japan branch of Lloyds TSB Bank.

The bank said the transaction was in line with the group's strategy of reducing its international presence.

"The impact of the sale on the Group's accounts is not expected to be material," it said.

"The sale of the remittance business to Shinsei Bank is subject to regulatory approval, and is expected to complete during the second half of 2012."