Mortgage News
Supermarket giant Tesco considers sale of banking division – reports
Guest Author:
Paloma KubiakSupermarket giant Tesco is considering the sale of its banking arm, according to reports over the weekend, though there is no suggestion of job losses or a wind-down process.
Sky News has reported that Tesco is planning to review its presence in the UK banking sector, which could result in the sale of the £1bn finance value book.
According to the report, it has drafted in Goldman Sachs to advise on the future of its banking arm.
Sources suggested the review is in very early stages so it may not lead to a formal sales process.
However, it was noted that a partial sale or joint venture may also be options the retailer could explore.
Tesco Bank has an estimated five million customers across its savings, insurance and credit products.
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It closed to new current account customers in December 2019 and closed all bank accounts in November 2021.
Out of the mortgage market
In September 2019, it pulled out of the mortgage market after selling its back book of 23,000 customer loans to Halifax for £3.8bn.
Last month, Tesco Bank announced Jacqui Ferguson had been appointed interim Chair of the Tesco Bank Board with immediate effect, replacing John Kingman who stepped down to join the Barclays Board.
Its latest half year results (to 31 August 2022) revealed it generated adjusted operating profit of £67m.
The company was contacted for comment, but Tesco Bank said it does not comment on rumour or speculation.