Tesco is set to launch a formal review into its presence in the financial services sector which could trigger a formal sales process of Tesco Bank, according to new reports.
Sky News revealed that the supermarket has enlisted Goldman Sachs to provide counsel on the future of its banking arm.
City insiders have told the news outlet that the review is at a “very preliminary” stage and may not lead to a formal sale process.
Another source suggested that a partial sale or joint venture could also be an option for the supermarket. If it was sold, a financial analyst told Sky News that the bank could be worth more than £1 billion based on its book value.
Launched in 1997, Tesco Bank is headquartered in Edinburgh and employs 3,800 people. The bank reported operating profits of £67 million in its last half-year results.
The bank has more than five million customers and offers products including savings accounts, credit cards, and pet insurance.
In 2021, rival supermarket Sainsbury’s also explored the possibility of selling its its banking arm but talks eventually came to nothing.
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