The Lloyds Banking Group, burdened by state funds from the bailout, reported an increase in first quarter profits as well as improved its cost savings target. It also helped its shares close with the breakeven price as they hit its highest levels in two years.
Nearly 40% of the bank is owned by the British taxpayer had recently reported its profit increased to GBP1.48 billion because of improved margins, lower costs and losses due to bad loans.
The shares in the bank had topped FTSE 100 risers and it gained as much as 6.9% after hitting a high of 57.2 pence for trading. Meanwhile, the government is considering to sell off its shares once 61 pence is reached to help the government recover its bailout investment worth GBP 20.5 billion to help the bank ride out the 2008 financial crisis.
According to CEO Antonio Horta-Osorio said the bank has made 'substantial progress' during the period. Focus, according to him was now being done for the improvement of the bank's performance and had not held discussions with the UK Financial Investments or the government over a share sale.
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