Sources said that Lloyds Banking Group Plc is seriously considering a sale of its lackluster Australian business units. Lloyds Banking Group is Britain's biggest mortgage lender.
Lloyds Banking Group is in discussions with Goldman Sachs regarding the potential sale of Lloyds International Pty, sources with knowledge of the deal said. Lloyds International Pty includes the BOS International and Capital Finance business units.
Lloyds, which is partly owned by the UK government, has been divesting assets it considers no longer significant, as it had reduced its balance sheet after its bailout by the government in 2008. Lloyds said that the bank was making substantial progress in reinvigorating its capital structure by offloading some of its assets. European financial institutions are strengthening their balance sheets through asset sales. The offloading of assets also makes these banks compliant to new and stricter capital regulations.
According to documents filed with the Australian Securities & Investments Commission, Lloyds International business unit announced a deficit of AUD148.3 million or around US$136 million last year. The deficit, however, was an improvement from the AUD1.20 billion loss recorded the previous year.
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