The first sale of state-owned shares in Lloyds Banking Group resulted in a £230 million loss for taxpayers, even though investors paid more for their stake than the government did in 2009, according to an analysis by the National Audit Office.
The loss factored in about £350 million of funding costs incurred since the government raised the money to buy its stake in 2009.
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Stripping out those costs, taxpayers made a profit of just under £120 million on the £3.2 billion of shares that were sold in September, said the NAO.
The government sold the first tranche of its £20 billion stake in Lloyds to institutional investors for 75 points a share, a slight premium to the average 73.6 points it paid to bail out the bank in 2009.