In a move to continue its focus on the UK, Lloyds Banking is pulling out of its activities in Australia, by selling its assets to Westpac Banking.

Westpac Banking, Australia's second biggest bank by assets, has agreed to buy Lloyds’ motor vehicle finance, equipment finance and corporate lending businesses for A$1.45 billion ($1.37 billion).

The deal is Westpac's largest acquisition since its 2008 takeover of St George Bank.

"This is a value creating, straightforward transaction that makes both commercial and strategic sense," said Westpac chief executive Gail Kelly in a statement.

"These are strongly performing businesses that we know well and that will expand our reach and capability in target segments."

The corporate loan book, motor and equipment financing businesses purchased by Westpac have a face value of A$8.4 billion, and will add A$100 million to the bank’s cash earnings by 2015, the firm said.

The sale is part of Lloyds' global strategy to cut costs and minimise risk, by shrinking its international network to refocus on the British domestic market, a Lloyds spokesperson told WealthBriefing.

“This is part of our 2011-2014 strategy to become more UK-focused, so this is just one of several country exits over recent years. It’s another step in that process,” he added.

The spokesperson also confirmed that the sale of Australian assets will not impact any other parts of the Lloyds business.