Lloyds Banking Group LLOY Disposal

  Lloyds Banking Group (LLOY) - Disposal

RNS Number : 4252R
Lloyds Banking Group PLC
19 November 2012

19 November 2012


Lloyds Banking Group plc  (the Group) announces today  that it has agreed  the 
sale of a portfolio of Irish  commercial real estate loans (the Portfolio)  to 
Risali Limited, an entity affiliated with Apollo Global Management, LLC (NYSE:
APO)for a cash consideration of £149 million. The transaction is not expected
to have  a material  impact on  the Group  due to  the significant  impairment 
provisions held  against the  Portfolio,  which are  higher than  the  average 
across the Irish wholesale book because of the particularly distressed  nature 
of these  assets.  The  sale  proceeds will  be  used  for  general  corporate 

The Portfolio generated  losses of  £202 million in  the year  to 31  December 
2011. The gross assets subject to the transaction are £1,466 million.

This transaction  is in  line  with the  Group's  strategy of  de-risking  its 
balance sheet and reducing its non-core assets.

The transaction is expected to complete in the first quarter of 2013.

                                   - END -




For further information:

Investor Relations

+44 (0) 20 7356 3537

Investor Relations Director

Email: charles.king@ltsb-finance.co.uk

Corporate Affairs

Emile Abu-Shakra
 +44 (0) 20
7356 1878

Head of Media Relations, Commercial

Email: emile.abu-shakra@lloydstsb.co.uk

                          FORWARD LOOKING STATEMENTS

This announcement  contains forward  looking statements  with respect  to  the 
business, strategy and plans  of the Lloyds Banking  Group, its current  goals 
and expectations relating to its  future financial condition and  performance. 
Statements that  are not  historical facts,  including statements  about  the 
Group or  the  Group's  management's beliefs  and  expectations,  are  forward 
looking statements. By their nature, forward looking statements involve  risk 
and uncertainty because they relate to events and depend on circumstances that
will or  may  occur  in  the future.  The  Group's  actual  future  business, 
strategy, plans and/or results may  differ materially from those expressed  or 
implied in these forward looking statements as a result of a variety of risks,
uncertainties and other factors, including UK domestic and global economic and
business conditions; the ability  to derive cost  savings and other  benefits, 
including as a result of the Group's simplification programme; the ability  to 
access sufficient funding to meet the Group's liquidity needs; changes to  the 
Group's credit  ratings;  risks  concerning borrower  or  counterparty  credit 
quality; instability  in  the  global financial  markets,  including  Eurozone 
instability; changing  demographic  and  market  related  trends;  changes  in 
customer preferences;  changes to  laws, regulation,  accounting standards  or 
taxation, including changes to  regulatory capital or liquidity  requirements; 
the policies and actions of governmental or regulatory authorities in the  UK, 
the European Union, or jurisdictions outside the UK, including other  European 
countries and the  US; the implementation  of the draft  EU crisis  management 
framework directive and banking reform  following the recommendations made  by 
the Independent  Commission on  Banking;  the ability  to attract  and  retain 
senior management and other employees; requirements or limitations imposed  on 
the Group as a result of HM Treasury's investment in the Group; the ability to
complete satisfactorily the disposal of certain assets as part of the  Group's 
EC state  aid obligations;  the extent  of any  future impairment  charges  or 
write-downs caused  by  depressed  asset valuations,  market  disruptions  and 
illiquid markets; the effects of  competition and the actions of  competitors, 
including non-bank  financial  services  and lending  companies;  exposure  to 
regulatory  scrutiny,   legal   proceedings,  regulatory   investigations   or 
complaints, and other  factors. Please refer  to the latest  Annual Report  on 
Form 20-F  filed  with  the  US  Securities  and  Exchange  Commission  for  a 
discussion of  certain  factors  together with  examples  of  forward  looking 
statements. The forward looking statements contained in this announcement are
made as  at  the  date of  this  announcement,  and the  Group  undertakes  no 
obligation to update any of its forward looking statements.

                     This information is provided by RNS
           The company news service from the London Stock Exchange


DISGGGCGGUPPUBB -0- Nov/19/2012 12:29 GMT
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