We expect Sainsbury’s Bank to return excess capital of at least £250 million to Sainsbury’s once the phased withdrawal from its Core Banking Business has been completed and the future model for Argos Financial Services is in place. Sainsbury’s intends to return this capital to shareholders.
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Sainsbury'sFurther to its announcement on 18 January 2024 regarding a phased withdrawal from its core banking business, J Sainsbury PLC (“Sainsbury’s”) is pleased to announce that it has entered into an agreement for the sale of Sainsbury’s Bank plc’s (“Sainsbury’s Bank”) personal loan, credit card and retail deposit portfolios (together the “Core Banking Business”) to NatWest Group (“NatWest”), one of the UK’s leading banks (the “Transaction”). We expect the Transaction to complete in the first half of calendar year 2025.
This Transaction does not include Sainsbury’s Bank’s commission income businesses, including insurance, ATMs and travel money. These are capital-light and profitable businesses with a strong connection to Sainsbury’s core retail offer.
Argos Financial Services (“AFS”) is also not included in the Transaction. A further update on Sainsbury’s plans for this business will be provided at a future date.
We expect Sainsbury’s Bank to return excess capital of at least £250 million to Sainsbury’s once the phased withdrawal from its Core Banking Business has been completed and the future model for Argos Financial Services is in place. Sainsbury’s intends to return this capital to shareholders.
Core Banking Business customers are expected to transfer to NatWest in the first half of calendar year 2025. Sainsbury’s Bank customers do not need to take any action as a result of this announcement. Further information relating to the transfer of the Core Banking Business to NatWest pursuant to Part VII of the UK Financial Services and Markets Act 2000 will be sent in due course.
There will be no immediate changes to Sainsbury’s Bank customers’ existing terms and conditions.
Simon Roberts, Sainsbury’s CEO said:
“I am pleased to be announcing this news today. NatWest’s values and customer focus are a close fit with ours and as one of the UK’s leading banks, NatWest’s scale and financial services expertise will ensure our existing financial services customers continue to be well looked after. There will be no immediate change for our bank customers as a result of this announcement. Today’s news means we will focus all our time and resources going forward on growing our core retail business, delivering great quality and value, week in week out.”
Paul Thwaite, NatWest Group CEO said:
“Following today’s announcement, we look forward to welcoming new customers to NatWest Group, where they will benefit from our expertise and award-winning digital banking offering. This Transaction is a great opportunity to accelerate the growth of our Retail banking business at attractive returns, in line with our strategic priorities. As well as a complementary customer base, the Transaction is expected to add scale to our credit card and unsecured personal lending business within existing risk appetite. NatWest Group has a strong track record of successful integration, and we are focussed on ensuring a smooth transition for customers.”
Source: Sainsbury’s
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