Lloyds Banking group will take a £250m hit to their group accounts following the sale of their Spanish banking operations.
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The sale to Spanish bank, Banco Sabadell announced on 29 April, includes their retail and private banking business and their local investment management business in Spain, following a £43m loss in 2012.
The deal is expected to be finalised this year and will see Lloyds receive £72m worth of shares in the Spanish bank and £17m in cash paid over the next five years, hinged on the performance of the business sold.
The total assets of the sale were £1.5bn, plus customer deposits of £670m.
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By GlobalDataThe Spanish sale comes following speculation US financial services company Ameriprise Financial (AMP) is making a bid for their UK assets management arm Scottish Widows Investment Partnership (SWIP).
AMP, are rumoured to be leading a group of bidders who are making $1.22bn play for the business, although when PBI last contacted Lloyds they refused to comment.
The Spanish deal comes as part of strategy implored by Lloyds to re-focus on their UK retail business and help shore up their balance sheet, in March the bank sold off a third of its stake in wealth management firm St James Place.
Despite the loss on the sale of their Spanish business, Lloyds reported their underlying profit had increased by over £1bn from the same quarter last year to £1.48bn.
The deal is subject to regulatory approval and is expected to be completed this year.
