Lloyds selling Uruguayan units to reduce international footprint

Banking group Lloyds has announced its intention to sell its operations in Uruguay to Banque Heritage (Uruguay) SA in an effort to scale back its international presence.

The lender is selling its Uruguayan retail, commercial and corporate banking operations (which currently operate as a brand of Lloyds TSB Bank).

The total assets being sold - which don't include Lloyds's representative office in Uruguay - were worth £261m at the end of 2011.

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"This transaction is in line with the group's strategy of reducing its international presence and the effect of the sale on the group is not expected to be material," the firm said on Friday afternoon.

As always, the transaction is subject to regulatory approval and a number of other conditions, though Lloyds expects the disposal to complete some time next year.

By 15:42, shares were up 2.17% at 36.99p.