Investec reiterates buy and 86p target on Lloyds

That amount is slightly less than expected. Nonetheless, the government has already reduced its stake in Lloyd´s from 43% in 2009 to 12% at present so its plans appear “well on track”.

Indeed, the manner in which the “drip” of the disposal is proceeding shows the state is intent on moving ahead quickly.

As an inducement, the government will offer a 5% discount to the market price and a 1-for-10 bonus share for 12-month retention.

One small advantage of those perks is that it is attracting “new money” to the re-privatisation of the lender, Investec analyst Ian Gordon pointed out.

Finally, the FCA´s consultation on the possibility of a time-bar for final submission of PPI-related complaints should be cautiously welcomed, Gordon added.

The analyst reaffirmed his 'buy' recommendation and 86p target price on the lender´s shares.