Tesco reportedly exploring sale of banking business
British supermarket giant Tesco is reportedly considering the sale of its banking services arm, Tesco Bank, according to Sky News.
The report says that Tesco is launching a review of its UK banking activities and has roped in Goldman Sachs to advise on Tesco Bank’s future.
However, sources have told Sky News that the review is still in its early stages and may not lead to a sale, with another source suggesting a partial sale or joint venture could also be on the table.
In addition, Sky News reports that the review does not suggest any potential winding down of the business or job losses. Tesco Bank announced in its recent results that its balance sheet “remains strong” with sufficient capital to “absorb changes” in regulatory and funding requirements.
Tesco Bank was established in 1997 and is headquartered in Edinburgh, Scotland. It claims to serve more than five million customers in the UK, offering savings accounts, insurance products and credit cards.