Search Share Prices
Barclays to buy Lloyds Irish mortgage portfolio for £4bn
Lloyds said it was selling its Irish residential mortgage portfolio to Barclays Bank for £4bn.
The transaction will generate a pre-tax loss on sale of around £110m, recognised in the first half results, the bank said.
The mortgage book is worth £4.3bn, of which £300m is impaired assets, and in the year to 31 December 2017 generated a pre-tax loss of £40m, Lloyds said.
The transaction will generate approximately 25 basis points of CET1 capital upon completion, slightly better than originally expected, and will complete in the second half of 2018.
"The sale is in line with the group's strategy of becoming a low risk, UK focused bank."
"Following the transaction the group will have minimal exposure to Ireland and the total outstanding run-off portfolio will be around £4bn, less than 1% of the group's loans and advances to customers."