Lloyds Banking Group is set to divest 12% stake in its wealth management subsidiary, St James’s Place (SJP), for £390 million (US$631.8 million) by the end of this year, according to The Sunday Times.

The bank intends to reduce its remaining 22% holding in SJP to less than 10%, once a current lock-in agreement expires tomorrow.

Antonio Horta-Osorio, CEO of Lloyds, was quoted by The Sunday Times as saying that he is keen to finalize the sale by the end of the first quarter of 2014.

Lloyds sold a 20% stake in SJP in March and agreed a 365 day lock in period when it could sell no more shares but advisers Merrill Lynch agreed to waive the agreement.

It then sold a further 15% in May under a lock in agreement which runs out tomorrow.

Lloyds have attributed the sales to the Prudential Regulation Authority’s assessment that the bank has a capital shortfall.