Lloyds Banking Group PLC (LON:LLOY) continues disposals as its pension trust also sells its share of the portfolio.
Lloyds Banking Group (LSE: LLOY) (NYSE: LYG.US) this morning announced the latest disposal in its continued 'non-core asset reduction', in the form of selling a portfolio of US residential mortgage-backed securities to a number of different institutions for a cash consideration of £3.3bn.
With a book value of £2.7bn, the transaction will gift Lloyds around £540m prior to tax, which will be reinvested into the company for "general corporate purposes".
As part of the sale, Lloyds' pension trust also sold its £805m (book value) share of the portfolio, to realise a pre-tax gain of £360m. Management said that this will go towards reducing the deficit in the scheme.
Representing further reduction in its risk-weighted assets, this morning's statement from the 39%-taxpayer-owned bank claimed that the sale will lift the group's core tier 1 capital by around 47 points (£1.4bn capital equivalent).
Today's news follows last week's disposal of 77 million shares in St James's Place for £450m, while Lloyds also reassured investors by saying that it is unlikely to need to raise further funds from shareholders, instead using cash generated from its business and disposals like today's to raise capital needed to absorb future losses on loans.
The share price was little moved in early trade, and still hovers close to its 24-month high of 63p. But if you are looking for alternative investment opportunities within the FTSE 100, then this exclusive wealth report reviews five particularly attractive possibilities.
All five opportunities offer a mix of robust prospects, illustrious histories and dependable dividends, and have just been declared by the Fool as "5 Shares You Can Retire On"!
Just click here for the exclusive free report, but don't delay as all Fool reports are available for a limited time only.
> Sam does not own shares in any of the companies mentioned.