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Nearly there.

The UK Treasury has now chopped its holdings in the Lloyds Banking Group to under 3 per cent as its drip feed of the stake it took to rescue the bank in the depths of the financial crisis nears its end.

The Treasury said this means the government has recovered £19.5bn of the £20.3bn it put in.

In a statement to the stock exchange, the bank said the government’s stake now stands at 2.95 per cent, adding:

Her Majesty’s Treasury may make discretionary disclosures if the percentage of its voting rights in Lloyds Banking Group plc falls below 2% and 1% or reaches 0% as a result of further disposals of shares.

The bank’s profits more than doubled in 2016.

Economic Secretary to the Treasury, Simon Kirby, said:

Lloyds’ recent annual results show that we are in a good position to reduce our shareholding further and expect to recover all of the money taxpayers injected into the bank during the financial crisis.

The Treasury had considered shedding its final stake through a placement with institutional investors.

Copyright The Financial Times Limited 2017. All rights reserved.
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