Barclays is reportedly mulling a takeover of Tesco Bank.

Tesco, which is looking to offload its banking unit, asked prospective buyers to submit non-binding offers by the end of last week.

According to sources cited by Retuers, Barclays made an indicative bid and is interested in Tesco Bank’s credit card and saving account products.

Other bidders are also expected, but the report notes that a deal could fail to materialise altogether. It is currently unclear how much any deal for Tesco Bank would cost.

Tesco Bank, launched in 1997 as a joint-venture between the supermarket and Royal Bank of Scotland, made £57 million in the first half of 2023, and had a book value at around £1.5 billion.

Barclays meanwhile is looking for ways of boosting its domestic retail bank in the UK with its share price down by around 10 per cent in the year to date. The bank acquired specialist mortgage lender Kensington Mortgages earlier this year.

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