The UK Government is in a position to start the sale of its 39% stake in Lloyds Banking Group as early as today, after the bank returned to profit, according to equity capital markets bankers at institutions short-listed to handle the process.

Lloyds share price was up 7% at noon BST to 73.5p after the bank made a £1.56 billion net profit for the first six months of the year, marking a sharp turnaround from a £697 million net loss in the first-half of last year, The Wall Street Journal reported.