Lloyds could return to private hands within a year

14th May 2015 16:59

Lloyds Banking Group could be fully returned to private hands in the next year, according to chairman Normal Blackwell.The government, which has already generated over £10bn from selling of almost half of its 41% stake in the bank, is set to continue selling shares to financial institutions such as pension funds and insures, with plans to also introduce sales to private retail investors.Blackwell said that a completed sale within the next year is "possible and would be very desirable. Whether the government can achieve that depends on market conditions."Lloyds plans to return a minimum of 50% of its sustainable earnings to shareholders in the medium term and is keeping its option regarding methods of returning capital.The bank plans to announce a dividend alongside both its half-year and full-year results this year.