Sainsbury’s has announced that it has reached an agreement for the sale of Sainsbury’s Bank to NatWest Group for a few of £125m. The acquisition includes Sainsbury’s core banking portfolio, including, personal loans, credit cards and retail deposits.
However this transaction does not include Sainsbury’s Bank’s commission income businesses, including insurance, ATMs and travel money, with Sainsbury’s viewing these business as too profitable and connected to its retailer business. The deal also does not include Argos Financial Services.
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Core Banking Business customers are expected to transfer to NatWest in 202, with no action needed. Sainsbury’s Bank customers do not need to take any action due to this announcement.
The deal is expected to be complete in the first half of 2025
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.”
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