NEW YORK (TheStreet) -- Shares of Lloyds Banking Group Plc (LYG) are down -1.12% to $5.30 in pre-market trade as shares in TSB jumped following its debut on the London Stock Exchange after Lloyds sold more of the offshoot business than originally planned, raising the prospect of a further sale this year, Reuters reports.
Lloyds said today that it sold a 35% stake in TSB, Britain's seventh biggest lender, at 260 pence a share.
That valued the business at 1.3 billion pounds, or $2.22 billion, less than the figure on Lloyds' books.
The TSB share sale is another step on the recovery path for Lloyds following its 20 billion pound state bailout in 2008 and will help clear the way for the government to sell its remaining 25% Lloyds stake, Reuters noted.
TheStreet Ratings team rates LLOYDS BANKING GROUP PLC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LLOYDS BANKING GROUP PLC (LYG) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity."