Chancellor Phillip Hammond confirmed on Friday that the Treasury had recovered £20.4bn in dividends and share sales since it began reducing its stake in the bank in 2013.
Lloyds Banking Group is set to report first-quarter results next week and markets will be watching for signs the government is moving to sell off its less-than 2% remaining stake.
Hammond said the break-even on Lloyds marked a “significant milestone” and that the government was close to selling off its final shares.
“Recovering all of the money taxpayers injected into Lloyds marks a significant milestone in our plan to build an economy that works for everyone,” he said.
“While it was right to step in with support during the financial crisis, the government should not be in the business of owning banks in the long term.”
Laith Khalaf, senior analyst at Hargreaves Lansdown, welcomed the news that the remaining stake can be sold off and make a profit for government.
