Local banks eye Lloyds Aussie assets

Lloyds exit from the Australian market could provide an opportunity for domestic banks

The Australian assets of British bank Lloyds have sparked growing interest from the likes of National Australia Bank (NAB), Westpac Banking Corp and Macquarie Bank as speculation grows that Lloyds could exit Australia by the end of 2013, according to The Australian Financial Review.

The partially state-owned Lloyds has been moving to shrink its global presence as part of its efforts to restabilise the bank's core British holdings.

The Australian holdings largely came via Lloyds' purchase of Halifax Bank of Scotland at the peak of the credit crisis and includes a portfolio of 12 loans, a Capital Finance business controlling $6 billion in loans skewed towards the automotive sector and a corporate loan operation, the AFR added.

Lloyds' Australian division reported a pretax profit of $286 million in the first half of the year, the bank reported on Thursday.