TSB launched as a standalone brand last autumn and at least 25% will be floated by the end of June 2014, Lloyds announced.

Lloyds is required to divest the TSB business under EU rules because of the government bailout it received at the height of the financial crisis.

TSB currently offers mortgages through its 632-strong branch network.

In today’s quarterly management statement Lloyds Banking Group announced a pre-tax profit of £1.8bn for the first three months of the year.