Sainsbury’s to sell banking portfolios to NatWest
The sale will not include Sainsbury's Bank's commission income businesses, which includes insurance, ATMs and travel money
Sainsbury’s has agreed to sell its banking arm’s personal loan, credit card and retail deposit portfolios to NatWest, in a deal that is set to complete next year. Under the deal, Sainsbury’s Bank will pay NatWest £125m to take on the portfolios.
The sale will not include Sainsbury’s Bank’s commission income businesses, which includes insurance, ATMs and travel money, as the supermarket said these were “capital-light and profitable businesses with a strong connection to Sainsbury’s core retail offer”. Argos Financial Services is also not included.
Sainsbury’s added that it plans to return capital of at least £250m to its shareholders once the withdrawal is completed.
Core Banking Business customers are expected to transfer to NatWest in the first half of the 2025 calendar year and “do not need to take any action”. There will also be no immediate changes to their 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, added: “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.”
