Banking group Lloyds TSB today announced the sale of its New Zealand banking and insurance operations for £2.25 billion sterling.
Lloyds is selling its subsidiary NBNZ Holdings, otherwise known as the National Bank of New Zealand, to Australia and New Zealand Banking Group.
Group chief executive Mr Eric Daniels said: "The sale of NBNZ continues the process of managing the group's business portfolio to focus on our core franchise."
The sale of NBNZ has been widely expected as part of a shake-up of Lloyds TSB launched by Mr Daniels since he joined the group in June from Citibank.
He has promised a "clearer focus" on organic growth and said a new business operating model would deliver an improved operating performance by the second half of next year.
He wants to develop the group's core retail and corporate franchises and build on its distribution strengths.
Lloyds said today that the £2.25 billion sale price of NBNZ would comprise a pre-close dividend from the New Zealand bank equivalent to about £200 million and cash of about £2.05 billion.
Lloyds said that, subject to completion in early December, an estimated post-tax profit of some £1.1 billion would be recognised in its profit-and-loss account.
The net asset value at June 30th of the businesses sold, excluding goodwill, was some £930 million, with NBNZ contributing £149 million to group attributable profits in 2002.
AFP