- Lloyds Banking Group said it had agreed to buy Tesco Bank’s mortgage book in a £3.8bn deal.

The transaction would see over 23,000 mortgage customers transition from Tesco Bank to Halifax, with ownership of the portfolio expected to transfer at the end of September 2019, and the transfer of legal title anticipated by the end of March 2020, the company said.

The acquired portfolio would generate good returns to Lloyds in excess of current organic market opportunities, the company said.

'Following this transaction, we now expect the Group's open mortgage book assets at the year end to be ahead of the year end 2018 balance,' the company said.

Under the ownership of Tesco Bank, the portfolio had generated customer income of about £81m and a pre-tax profit of about £9m in the year to 28 February 2019.

At 10:06am: [LON:LLOY] Lloyds Banking Group PLC ORD share price was -0.87p at 49.45p

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