The government has sold the last of its shareholding in Lloyds Banking Group, returning almost £900m in profit.
The government acquired a 43% shareholding in Lloyds in 2009 following a £20.3bn intervention in the struggling bank.
The sale returned £21.2bn to the taxpayer and earned £894m on top of the initial investment, including £400m in dividends, the government said.
Lloyds banking group was bailed out by the UK Financial Investment unit of the Treasury during the financial crisis. The government aimed to turn a profit for taxpayers on the sale of the shareholding.
Shares were sold through accelerated bookbuilds (ABBs) in September 2013 and March 2014, which involved selling a large block of shares to institutional investors overnight.
Additional shares were sold through two trading plans, which ran from December 2014 to June 2016, and from October 2016 to May 2017. The trading plans involved drip-feeding shares into the market on a daily basis, over an extended period of time.
The final government stake, as of Lloyds annual general meeting (AGM) last week, stood at 0.25%.
Since the bailout Lloyds said it had repaired its balance sheet, reduced its cost base, cut complexity and international exposure, built and sold TSB, and addressed legacy issues. Lloyds returned to profitability in 2013 and resumed paying dividends in 2014.
It is now the largest digital bank in the UK and the highest UK taxpayer, according to the PwC total tax contribution survey, having contributed more than £11bn since 2010.
Lloyds also confirmed new targets as part of its 2017 helping Britain prosper plan to help tackle issues such as the housing shortage, lending to SMEs and apprenticeships and skills.
Chief executive António Horta-Osório (pictured) said: "Today the government sold its last shares in Lloyds banking group, receiving more money than was originally invested.
"Six years ago we inherited a business that was in a very fragile financial condition but we've turned the group around."
Chairman Lord Blackwell added: "While we are proud of the progress we have made over the last few years, we recognise there is still a lot to do to transform Lloyds banking group into the best bank for customers and play our full role in helping Britain prosper."
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