The UK's biggest supermarket chain Tesco is reportedly looking into selling the banking arm of the business. According to reports, the retailer was in the "very preliminary stage" of a review into Tesco Bank and it may not lead to formal sale.
Based on its book value, the sale of Tesco Bank could bring in more than £1billion for the retailer. Goldman Sachs has reportedly been advising on the sale. The potential buyers are expected to be other mid-sized UK lenders as well as financial investors.
Tesco Bank employs around 3,800 people and it is based in Edinburgh but also has staff in Glasgow and Newcastle. Tesco Bank offers a range of personal banking and insurance products, including personal loans, credit cards, car insurance and pet insurance.
Tesco Bank says it currently holds nearly £6 billion in customer deposits. In the first half of 2022, Tesco Bank recorded an adjusted operating profit of £67million, down 6.9% on the year before.