By Jonathan Davies

The government has sold another 1% of its stake in Lloyds Banking Group, reducing its stake to just under 13%.

UK Financial Investments, the body set up by the Treasury to manages its stakes in bailed out banks, now owns 12.97% of Lloyds.

The price paid per share has not yet been revealed, but the Chancellor George Osborne said the government has now recouped £14.5 billion from share sales, suggesting this round totalled around £500 million.

The government bought a 43% stake in Lloyds Banking Group for £20.5bn during the financial crisis. It plans to have sold its entire stake by the end of next year and is expected to make a profit.

That comes in stark contrast to its stake in the Royal Bank of Scotland, where the first share sale came in at a £1bn loss.