Lloyds sells Irish mortgage book to Barclays for 4 billion pounds

Lloyds sells Irish mortgage book to Barclays for 4 billion pounds

Comments Off on Lloyds sells Irish mortgage book to Barclays for 4 billion pounds


LONDON (Reuters) – Lloyds Banking Group (LLOY.L) said on Friday it had sold its Irish residential mortgage portfolio to Barclays (BARC.L) for around 4 billion pounds ($5.4 billion) in cash, as part of a plan to focus on its core UK market.

FILE PHOTO: People walk past a branch of Lloyds Bank on Oxford Street in London, Britain July 28, 2016. REUTERS/Peter Nicholls/File Photo

The deal covers gross assets of around 4.3 billion pounds, of which 300 million pounds are impaired, Lloyds said in a statement, and in the year to end-December they generated a pretax loss of around 40 million pounds.

Lloyds said the deal would generate a pretax loss of around 110 million pounds, which would be recognized in its first-half results, but that it would also result in a better-than-expected increase in common equity tier 1 of around 25 basis points.

Following the deal, which is due to complete in the second half of 2018, Lloyds said it would have only a minimal exposure to Ireland, and the total outstanding run-off portfolio would be around 4 billion pounds.

Reporting by Simon Jessop, editing by Silvia Aloisi and Susan Fenton



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