Tesco explores sale of banking arm

Tesco is reportedly set to launch a review of its banking arm which could lead to the sale of the business. 

According to Sky News, the supermarket giant is drafting in Goldman Sachs to help advise on the future of Tesco Bank.

Sources told Sky that the review was at a “very preliminary stage” and may not result in a formal sale process.

Another source suggested that a review could lead to a partial sale or joint venture.

One analyst said that Tesco Bank, which generated £67m of operating profits in its last half-year results, could be valued at more than £1bn if it is sold. 

Sky added that there was no suggestion that a review of the banking arm could result in any form of wind-down or job losses.

Tesco has been contacted for further comment.