Lloyds Banking Group has returned to private ownership after the UK government sold the final shares left over from its 2008 bailout.

During the financial crisis, the UK government poured £20bn into Lloyds in an attempt to save it, meaning taxpayers owned 43 percent of the bank

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Over the past five years, the government has slowly been selling its stake in the group and confirmed that it had sold its final share today. The government should see a return of £21.2bn on its original investments.

Lloyds chief executive Antonio Horta-Osorio told shareholders last week that he believed the government would make around £500m from the bailout, but the bank confirmed today that it made £894m.

Horta-Osório said in a statement:

“Today the Government has sold its last shares in Lloyds Banking Group, receiving more money than was originally invested. Six years ago we inherited a business that was in a very fragile financial condition. Thanks to the hard work of everyone at Lloyds, we’ve turned the group around.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The bank has struggled over the past seven years to recoup the losses it suffered during the global financial crisis. The BBC reports that around 57,000 jobs were to return to profitability. The group achieved a £4.3bn profit last year; its biggest in a decade.

Lord Blackwell, Lloyds Banking Group chairman, said:

“The combination of our strong financial performance and the progress we have made towards our strategic priorities has enabled over £21.2 billion to be returned to the Government, more than repaying the amount that taxpayers invested.”

Lloyds wasn’t the only bank to be bailed out by the state. The Royal Bank of Scotland (RBS) also suffered major losses back in 2008, and the government rescued it with a £45bn bailout.

Since then, the bank has struggled to regain its footing and the taxpayer still owns 73 percent of it. It has posted nine consecutive years of losses, bringing its total loss since 2008 to £58bn.