Sainsbury's sells banking arm to NatWest

Sainsbury's is to sell most of its banking business to NatWest.

Pic: Reuters

The high street lender will gain approximately one million new accounts from the deal.

NatWest said it also expects to acquire around £2.5bn in gross customer assets, including £1.4bn of unsecured personal loans and £1.1bn of credit card balances, along with £2.6bn in customer deposits.

The sale is expected to be completed in the first half of 2025.

Sainsbury's said its banking 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 chain announced in January it was winding down its banking division to focus on the retail side of its business.

NatWest is expected to receive around £125m from Sainsbury's, on completion of the deal, to take on its core banking assets and liabilities.

The supermarket giant estimates it will return at least £250m in excess capital to shareholders.

Its chief executive Simon Roberts 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 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.

"As well as a complementary customer base, the transaction is expected to add scale to our credit card and unsecured personal lending business."

Care home operator Four Seasons plots sale

Taylor Swift shows 'to boost economy by £300m'

Boeing crash relatives seek $25bn fine

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.

It comes after Sainsbury's rival Tesco announced earlier this year it was selling most of its banking arm to Barclays.

The deal was said to be worth up to £1bn.