U.K. to Ultimately Net $643 Million on Lloyds Rescue

The U.K. will get about 500 million pounds ($643 million) more than it injected into Lloyds Banking Group Plc during the financial crisis, Chief Executive Officer Antonio Horta-Osorio said.

Britain’s biggest mortgage lender is “days away” from full private ownership as the Treasury reduces its stake, Horta-Osorio told shareholders at the lender’s annual general meeting in Edinburgh Thursday.

Chancellor of the Exchequer Philip Hammond last month said the U.K. had already recouped the 20.3 billion pounds of capital injected into the lender in 2009, which at one point had left taxpayers holding a 43 percent stake. The U.K.’s holding has now dropped to 0.25 percent, Chairman Norman Blackwell said at the meeting.

“We take great pride in the fact that the government has received more than its 20.3 billion pounds it put in,” Horta-Osorio said. “We’re days away from a major milestone.”

The Treasury still owns more than 70 percent of Edinburgh-based Royal Bank of Scotland Group Plc. Those shares will almost certainly be sold below the purchase price, Hammond has said, resulting in a multi-billion-pound loss.

The stock slipped 0.3 percent to 69.66 pence in London. Lloyds has gained 12 percent this year, giving the bank a market value of almost 50 billion pounds.

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