Lloyds Banking Group has decided to sell its residential mortgage portfolio in Ireland to Barclays for nearly $5.4bn in cash.
The divestment was part of the bank’s plan to streamline its business activities in the core UK market.
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It also marks Lloyds exit from the Irish market. It closed its retail banking operations in Ireland in 2010.
The mortgage business which was sold in this deal include £300m of impaired assets, which generated a pre-tax loss of around £40m to the company last year.
Following the deal, Lloyds would carry £4bn of additional mortgage assets in Ireland, which would expire normally.
Barclays can bundle the mortgage loans and divest them to other investors, Bloomberg reported quoting an unnamed source
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By GlobalDataNow, Lloyds intends to focus on the British market, where it faces stiff competition from the new entrants.
Last month, Lloyds Banking Group reported pre-tax profits of £1.6bn ($2.2bn) in the first quarter of 2018, 23% increase compared to the corresponding period in the previous year.
While it net income rose by 4% on a year-on-year basis to £4.3bn, customer deposits dropped by 1% to £413bn.
