Shares in Lloyds Banking Group hit £1 yesterday as analysts moved to reassure investors over the security of the ‘superbank’.

The group’s share value hit 109p yesterday up 33.8p, the highest it has been since the merger between Lloyds TSB and HBOS was confirmed earlier this month.

According to reports, the shares rose as a direct result of a statement from an analyst at the bank’s broker Citigroup.

According to reports in The Independent, Citi has denied rumours that Lloyds may still be nationalised, arguing that it will only need an extra £3billion at the most – which would see the Government’s shareholding to 57 per cent from 43 per cent.

The broker said: “Although this would leave the group majority owned by the Government, we do not view this as making nationalisation ‘inevitable.'”

And as a result the broker upgraded its recommendation from ‘hold’ to ‘buy’.

Preliminary results for Lloyds Banking Group (previously Lloyds TSB and HBOS) are due to be announced later next month, when the extent of the Group’s troubles will be revealed.

Lloyds TSB has been in the process of acquiring HBOS since October last year when HBOS looked set for failure without a bail-out or acquisition.

© Fair Investment Company Ltd