Lloyds Banking Group will halve its international presence over the next three years, reducing its overseas presence to fewer than 15 countries, from the present 30, to focus more on domestic retail banking, Reuters reports.Which foreign subsidiaries are targeted for sale or closure under Lloyds' strategic review was not made clear in a briefing held in London overnight, though the loss-making Australian arm might be one that fits the criteria for a sale.The strategy document published by Lloyds states that "we will continue to divest or run off non-core assets, with a goal of reducing assets in the non-core portfolio by at least half over the four years to the end of 2014.  "These are businesses which deliver below-hurdle returns, which are outside our risk appetite or are distressed, are subscale or have an unclear value proposition, or have a poor fit with our customer strategy."Lloyds has continued to invest in Australia recently, taking steps to establish a foreign bank branch alongside its established subsidiary.On the other hand, most of Lloyds' investment in Australia has been to prop up the balance sheet of a business awash in lending losses.Lloyds International in Australia recorded a loss before tax of A$1.82 billion in the year to December 2010, with impairment charges climbing as the bank covered the costs of separating its corporate banking business from Bankwest.Impaired loans as a percentage of advances were 28.7 per cent at the end of 2010, up from 14.3 per cent at the end of 2009.