According to a statement, more than £18.5bn of the £20.3bn injected at the time of the bailout has now been recovered through sales of shareholdings.
Economic secretary to the Treasury Simon Kirby said: “Since our decision to sell the government’s stake in Lloyds we have recovered over 90% of the money taxpayers injected into the bank during the financial crisis.
“This represents real progress and I am delighted that we are on track to return Lloyds to private ownership.”
Today’s announcement follows one made earlier this month, which confirmed the government was no longer the largest shareholder in Lloyds.
The government’s trading plan was extended in October last year and will run until October this year.
All proceeds from the sale will go towards reducing the national debt, the Treasury said.
