NatWest is set to acquire the core banking business of Sainsbury’s Bank.
Sainsbury’s Bank’s personal loan, credit card and retail deposit portfolios are expected to transfer to NatWest in the first half of 2025, as the company decides to focus more on its food business.
Sainsbury’s will retain its commission income businesses, including insurance, ATMs and travel money functions. Argos Financial Services will also not be included in the transaction.
It is currently unclear how many employees will be affected by the decision, but Sainsbury’s said it would seek to redeploy employees at risk of losing their jobs as part of a consultation process.
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Sainsbury’s CEO Simon Roberts 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.
“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, said: “This transaction is a great opportunity to accelerate the growth of our retail banking business at attractive returns, in line with our strategic priorities.
“NatWest Group has a strong track record of successful integration, and we are focussed on ensuring a smooth transition for customers.”
Sainsbury’s Bank started as a joint venture with the Bank of Scotland in 1997, before Sainsbury’s took full ownership of the brand in 2014.
In January Sainsbury’s said it planned to wind down its banking division in order to focus on its core food business.
Earlier this year Barclays took over Tesco Bank’s retail operations, resulting in the transfer of 2,800 employees. Nationwide is also set to acquire Virgin Money, with the deal set to conclude later this year.
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