British lender Lloyds Banking Group Plc (LON:LLOY) announced on Tuesday it will dispose of its remittance operations in Japan, called GoLloyds, to local Shinsei Bank Ltd (TYO:8303) for a non-specified sum.
The sale is part of Lloyds’ strategy of narrowing its international presence, the lender said, adding it does not expect the transaction to have a material impact on its accounts. At present, Lloyds’ Japanese presence consists of a branch that conducts remittance and deposits business.
Separately, Shinsei Bank said the deal will complement and further improve the suite of foreign currency deposit services for individual customers. The bank also noted that demand for overseas remittance services in the country is rising as the number of both foreign residents and overseas visitors is seen to go up in the near future.
The divestment needs to be greenlighted by local regulators and is projected to close during the second half of the year. The total assets of the business being sold were GBP1.5m (USD2.3m/EUR1.8m) as at the end of December 2011.
In late March 2012, Lloyds announced it was selling its onshore Dubai activities, which had total assets of GBP482m, to HSBC Bank Middle East Limited as part of the same strategy.