Sainsbury’s is to sell its banking business to NatWest.
The agreement could see NatWest take on around one million customer accounts, as well as £1.4bn of unsecured personal loans, £1.1bn of credit card balances and £2.6bn of customer deposits.
The deal is expected to be completed in the first half of 2025.
Sainsbury’s said customers would “not need to take any action” and said there would be no immediate changes to their terms and conditions.
It comes after the supermarket giant announced in January it was winding down its banking division to focus on the retail side of its business.
Simon Roberts, the chief executive of Sainsbury’s, said: “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.”
NatWest boss Paul Thwaite added: “This transaction is a great opportunity to accelerate the growth of our retail banking business at attractive returns, in line with our strategic priorities.”
The sale does not include Sainsbury’s Bank’s commission income businesses, such as insurance, cash points and travel money.
Argos Financial Services is also not included.
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