Lloyds Banking Group has said that it is selling its Ecuadorian branch assets and liabilities to Ecuador-based banking company Banco Pichincha, for a cash consideration of up to $25m.
Lloyds’ Ecuadorian business is primarily a corporate relationship bank operating through two branches and employing 108 people. However, the Lloyds private banking operations in Ecuador are not part of this transaction.
According to the Lloyds, the total gross assets of its Ecuadorian business at December 31, 2009 were valued at $170m whilst the net assets for the business amount to $25m.
Lloyds Banking Group said that the transaction is in line with its strategy of divesting assets which are not core to its strategy, and over the last 12 months the group has now sold seven businesses, raising over GBP750m.
The transaction is subject to certain conditions including regulatory approval and is expected to be completed in the second half of the year.