Lloyds, the UK bank, has offloaded over £2bn of assets last month in a bid to get rid of intangible assets, which yields no profit for the bank, and to enable the bank meet its expansion strategy.
The lender has initiated a plan to dispose nearly £1.5bn of assets every month until the end of 2014, by which the bank will dispose its total £200bn of unwanted loans and investments, reported the Financial Times.
The bank, which has 40% share of the UK government, said that it disposed a £1.2bn portfolio, whose 40% comprises real estate and corporate loans including one for McCarthy and Stone.
According to industry sources, this deal was codenamed as Project Lundy and has been completed after last week’s sell off over £1bn of private equity investments.
In 2009, the bank had £300bn of non-core assets, and with the sale of £23bn of unwanted assets during the first six months of current fiscal, the bank has reached at £118bn non-core assets.
The London-based lender expects that by the end of 2014, its non-core assets will slash to less than £70bn, comprising £24bn of Irish loans, shipping and aerospace businesses, and riskier retail mortgages.