Five questions answered on the sale of Lloyds’ Spanish division

The company has not been doing well of late.

Lloyds banking group has announced it is selling its Spanish retail division to Spanish Bank business Banco Sabadell. We answer five questions on the deal.

How much has Lloyds sold its Spanish division for?

It has sold its Spanish retail banking business to Banco Sabadell for 1.8 per cent stake in the Spanish bank, which it will hold for at least two years. The deal also includes the transfer of £1.5bn of assets, such as retail mortgages and deposits. However, its corporate banking division wasn’t included in the sale.

Lloyds said the stake is worth about 84m euros ($110m; £72m). As a result of the sale the bank will make a £250m loss it said.

Banco Sabadell may also be required to pay a further £17m over the next five years, dependent on the profitability of the mortgage business.

Why is Lloyds selling off the Spanish part of its business?

Lloyds said the sale was part of its plan to reduce its international presence.

According to Reuters, Lloyds is cutting its presence from around 30 countries and has already sold operations in 12 countries over the last two years. The company wants to be in less than 15 countries by 2014.

It has also been trying to sell branches in the UK, as is required by European regulators as part of the government take over deal.

How big is Lloyds’ Spanish division?

It has total assets of £1.52 bn, which consist mainly of retail mortgages and deposits, plus 28 offices and a local investment management business.

It lost 43 million euros last year.

How well is the Spanish Bank Banco Sabadell doing?

Shares in the bank were 1.58 euros this morning, after they shed 30 per cent since August last year.

How well has Lloyds been doing of late? 

The 39 per cent state owned bank has faced billions of pounds of losses recently in countries such as Ireland and Australia.

It was also dealt a blow last week when the Co-operative group pulled out of a deal to buy more than 600 branches of Lloyds. The bank is now planning to sell the branches as a stand-alone bank through stock market listing.

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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To stop Jeremy Corbyn, I am giving my second preference to Andy Burnham

The big question is whether Andy Burnham or Yvette Cooper will face Jeremy in the final round of this election.

Voting is now underway in the Labour leadership election. There can be no doubt that Jeremy Corbyn is the frontrunner, but the race isn't over yet.

I know from conversations across the country that many voters still haven't made up their mind.

Some are drawn to Jeremy's promises of a new Jerusalem and endless spending, but worried that these endless promises, with no credibility, will only serve to lose us the next general election.

Others are certain that a Jeremy victory is really a win for Cameron and Osborne, but don't know who is the best alternative to vote for.

I am supporting Liz Kendall and will give her my first preference. But polling data is brutally clear: the big question is whether Andy Burnham or Yvette Cooper will face Jeremy in the final round of this election.

Andy can win. He can draw together support from across the party, motivated by his history of loyalty to the Labour movement, his passionate appeal for unity in fighting the Tories, and the findings of every poll of the general public in this campaign that he is best placed candidate to win the next general election.

Yvette, in contrast, would lose to Jeremy Corbyn and lose heavily. Evidence from data collected by all the campaigns – except (apparently) Yvette's own – shows this. All publicly available polling shows the same. If Andy drops out of the race, a large part of the broad coalition he attracts will vote for Jeremy. If Yvette is knocked out, her support firmly swings behind Andy.

We will all have our views about the different candidates, but the real choice for our country is between a Labour government and the ongoing rightwing agenda of the Tories.

I am in politics to make a real difference to the lives of my constituents. We are all in the Labour movement to get behind the beliefs that unite all in our party.

In the crucial choice we are making right now, I have no doubt that a vote for Jeremy would be the wrong choice – throwing away the next election, and with it hope for the next decade.

A vote for Yvette gets the same result – her defeat by Jeremy, and Jeremy's defeat to Cameron and Osborne.

In the crucial choice between Yvette and Andy, Andy will get my second preference so we can have the best hope of keeping the fight for our party alive, and the best hope for the future of our country too.

Tom Blenkinsop is the Labour MP for Middlesbrough South and East Cleveland