Government no longer biggest shareholder in bailed-out Lloyds

The Government is no longer the biggest shareholder in Lloyds Banking Group, following its £20bn bail-out during the financial crisis.

Lloyds said the announcement was a "key milestone" in the return of the lender to private ownership after it was rescued by taxpayers.

The development came as it was disclosed that the Treasury had sold another 1% chunk to take its holding of the group to below 6%.

The Government had owned 43% of the bank at its peak before placements with City institutions in 2013 and 2014, followed by more gradual share sales which saw the stake reduced.

Its progress marks a stark contrast with that of Royal Bank of Scotland (LSE: RBS.L - news) , which remains 73% owned by the taxpayer.

The latest 1% stake in Lloyds sold by the Government is worth around £470m at its closing market value on Friday of around 66p per share.

At this value the shares are lower than the "break-even" price that the Treasury needs to recover the sum it paid for them - though it sold earlier tranches at higher values.

Chancellor Philip Hammond said the Government was "on track to recover all of the £20bn injected into the bank during the financial crisis", with more than £18bn recovered so far.

Lloyds chief executive Antonio Horta-Osorio said: "Today's announcement that the UK Government is no longer our largest shareholder is a key milestone in the journey of Lloyds Banking Group back to full private ownership."

The group includes Halifax and Bank of Scotland as well as Lloyds Bank.

BlackRock (Sao Paolo: BLAK34.SA - news) , the world's largest asset manager, is now its top shareholder.