The Lloyds bank group, 39% owned by the Government, reported Q1 profits of £1.48 billion,up from £280 million, beating analysts expectations substantially, with no futher funds set aside for mis selling claims and costs for the period reduced by 6%.

The share price currently stands slightly higher than the pre profit announcement at 55p, with the Government looking to exit 30% of its holding at 61p. The market is very aware that there will be massive selling at that price but the figures Lloyds have produced look good for the future of the group and the risk in holding their shares is subsiding.

This is despite the recent breakdown in the sale of 632 branches of Lloyds, an EU bailout requirement, to the Co-op, that has now cost an estimated £1.3 billion and may well be wrapped up in a stand alone share sale later in the year.