With a lock-up agreement that expires today, industry speculation points to a reduction in its shareholding after the recent divestment of Scottish Widows Investment Partnership to Aberdeen Asset Management.
Reports around the sale suggest the stake could bring in £390m to the banking group, which would boost capital levels in line with PRA requirements.
No timeframe has been set by the bank, although reports have said Q1 2014 could be a target.
A Lloyds spokesperson said details of a sale being imminent, as reported in the Sunday Times, were based purely on speculation and declined to comment further.
In March the state-owned bank sold 20% of its stake in the St James’s Place wealth network, landing it £450m.
