LYG Lloyds Banking Group Plc

By Ian Walker

LONDON--Lloyds Banking Group PLC (LLOY.LN) Wednesday said the U.K. government has lowered its shareholding in the bank to 2.1 billion shares, or about 2.95% of its issued share capital.

The U.K. government previously held 2.78 billion shares.

No price was disclosed for the share sale, which was conducted on Tuesday. However, the U.K. Treasury said the latest sales take the total money recovered to over 19.5 billion pounds ($23.73 billion) of the GBP20.3 billion taxpayers injected into Lloyds during the financial crisis, once share sales and dividends received are accounted for.

The government is putting money raised from the sale toward reducing the national debt.

"Lloyds' recent annual results show that we are in a good position to reduce our shareholding further and expect to recover all of the money taxpayers injected into the bank during the financial crisis," Economic Secretary to the Treasury Simon Kirby, said.

Lloyds, the U.K.'s biggest retail bank, was bailed out by U.K. taxpayers during the financial crisis, with the government taking a 39% stake. The government started selling its shares in the bank in late 2013.

Last October, U.K. Treasury Chief Philip Hammond said the government would begin to sell its remaining 9.1% stake in Lloyds in a piecemeal fashion, after withdrawing a planned retail sale, attributing its decision to market volatility.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

March 15, 2017 03:45 ET (07:45 GMT)

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