Lloyds Banking Group PLC Sale of Irish Commercial Loans Portfolio (5027U)
July 30 2015 - 2:02AM
UK Regulatory
TIDMLLOY
RNS Number : 5027U
Lloyds Banking Group PLC
30 July 2015
30 July 2015
LLOYDS BANKING GROUP ANNOUNCES THE SALE OF A PORTFOLIO OF IRISH
COMMERCIAL LOANS
Lloyds Banking Group plc ('the Group') announces today that it
has agreed the sale of a portfolio of Irish commercial loans to a
consortium comprising Ennis Property Finance Limited, an entity
affiliated to Goldman Sachs; Feniton Property Finance Limited, an
entity affiliated to CarVal; and Bank of Ireland, for a cash
consideration of approximately GBP827 million at current exchange
rates.
The gross assets subject to the transaction are c.GBP2.6
billion, of which GBP2.3 billion were impaired and in the year to
31 December 2014 they generated pre tax losses of c.GBP130 million.
The sale proceeds will be used for general corporate purposes and
the transaction is not expected to have a material impact on the
Group but will be capital accretive (c.7bps).
The sale is in line with the Group's strategy of deleveraging
its balance sheet by reducing run off assets and creating a low
risk, UK focused bank. As at 30 June 2015, impaired loans as a
percentage of closing advances for the Group were 2.7 per cent and
provisions as a percentage of impaired loans were 55.1 per cent. On
a pro-forma basis, the impact of this sale would be to reduce the
impaired loans as a percentage of closing advances to 2.2 per cent
and reduce provisions as a percentage of impaired loans to 48.3 per
cent. These compare with 2.9 per cent and 56.4 per cent at 31
December 2014, and 8.6 per cent and 48.2 per cent as at 31 December
2012. Following this transaction, the Group will have minimal
remaining exposure to commercial assets in Ireland (<GBP30
million).
The transaction is expected to complete in Q4 of 2015.
- END -
For further information:
Investor Relations
Douglas Radcliffe +44 (0) 20 7356 1571
Investor Relations Director
Email: douglas.radcliffe@finance.lloydsbanking.com
Corporate Affairs
Ian Kitts +44 (0) 20 7356 1347
Head of Media (Commercial Banking & Consumer Finance)
Email: ian.kitts@lloydsbanking.com
FORWARD LOOKING STATEMENTS
This document contains certain forward looking statements with
respect to the business, strategy and plans of Lloyds Banking Group
and its current goals and expectations relating to its future
financial condition and performance. Statements that are not
historical facts, including statements about Lloyds Banking Group's
or its directors' and/or 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 upon circumstances that will or may occur in the
future. Factors that could cause actual business, strategy, plans
and/or results to differ materially from the plans, objectives,
expectations, estimates and intentions expressed in such forward
looking statements made by the Group or on its behalf include, but
are not limited to: general economic and business conditions in the
UK and internationally; market related trends and developments;
fluctuations in exchange rates, stock markets and currencies; the
ability to access sufficient sources of capital, liquidity and
funding when required; changes to the Group's credit ratings; the
ability to derive cost savings; changing customer behaviour
including consumer spending, saving and borrowing habits; changes
to borrower or counterparty credit quality; instability in the
global financial markets, including Eurozone instability, the
potential for one or more countries to exit the Eurozone or
European Union (EU) (including the UK as a result of a referendum
on its EU membership) and the impact of any sovereign credit rating
downgrade or other sovereign financial issues; technological
changes and risks to cyber security; pandemic, natural and other
disasters, adverse weather and similar contingencies outside the
Group's control; inadequate or failed internal or external
processes or systems; acts of war, other acts of hostility,
terrorist acts and responses to those acts, geopolitical, pandemic
or other such events; changes in laws, regulations, accounting
standards or taxation, including as a result of further Scottish
devolution; changes to regulatory capital or liquidity requirements
and similar contingencies outside the Group's control; the
policies, decisions and actions of governmental or regulatory
authorities in the UK, the EU, the US or elsewhere including the
implementation of key legislation and regulation; 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; actions or omissions by the
Group's directors, management or employees including industrial
action; changes to the Group's post-retirement defined benefit
scheme obligations; the provision of banking operations services to
TSB Banking Group plc; the extent of any future impairment charges
or write-downs caused by, but not limited to, depressed asset
valuations, market disruptions and illiquid markets; the value and
effectiveness of any credit protection purchased by the Group; the
inability to hedge certain risks economically; the adequacy of loss
reserves; the actions of competitors, including non-bank financial
services and lending companies; and exposure to regulatory or
competition scrutiny, legal, regulatory or competition proceedings,
investigations or complaints. 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. Except as required by any
applicable law or regulation, the forward looking statements
contained in this document are made as of today's date, and Lloyds
Banking Group expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward looking
statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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