Sainsbury’s Sells Banking Assets to NatWest Group

British supermarket chain Sainsbury’s is selling its personal loan, credit card, and retail deposit portfolios to NatWest Group in a deal valued at £2.5 billion. The transaction includes £1.4 billion in unsecured personal loans and £1.1 billion in credit card balances, along with approximately £2.6 billion in customer deposits.

NatWest will acquire around one million new customer accounts through this agreement, which is expected to close in the first half of 2025. This move follows Sainsbury’s announcement in January of its intention to wind down parts of its banking operations.

Sainsbury’s CEO, Simon Roberts, stated that NatWest’s values and customer focus align closely with those of Sainsbury’s. He assured that there will be no immediate changes for existing bank customers and emphasised that this deal allows Sainsbury’s to concentrate on growing its core retail business.

Under the terms of the transaction, NatWest will receive the gross customer assets, liabilities, and associated cash at completion, with Sainsbury’s paying an agreed £125 million consideration. Sainsbury’s expects to return at least £250 million to shareholders as part of the deal.

NatWest Group CEO, Paul Thwaite, described the acquisition as an opportunity to accelerate the growth of their retail banking business, particularly in credit card and unsecured personal lending, within their existing risk framework. He highlighted NatWest’s strong integration track record and commitment to ensuring a smooth transition for customers.