Tesco Is Reportedly Thinking About Selling Its Banking Arm

Tesco Bank is going to be looked at by the UK store.

Sky News says that the big supermarket chain Tesco is thinking about selling its bank.

The newspaper said that Tesco Bank is being looked at by the supermarket, but insiders say that this is still very early and may not lead to a formal sale.

A second source said that a partial sale or a joint venture could also be an option.

The report says that Tesco wants to hire Goldman Sachs to help it plan for the future of its banking business, which has more than five million customers.

Tesco Bank started in 1997 and had adjusted operating profits of £67 million in its last half-year results. In its most recent announcement of results, it said that its balance sheet “remains strong.”

It also said that it still has enough capital and liquidity to handle changes in regulatory and funding requirements.

Sky News said that there is no sign that the business review might lead to job cuts or any other kind of winding down.

J. Sainsbury, a competitor, also thought about getting rid of its banking business, but decided not to in 2021.