3rd Mar 2025 11:10
(Alliance News) - J Sainsbury PLC on Monday said it sealed the sale of a credit card portfolio of its Argos general merchandise arm, and affirmed plans to return GBP250 million of excess capital to shareholders.
The London-based supermarket chain said NewDay received "appropriate financing and antitrust approvals". It had announced the GBP720 million sale back in October.
"NewDay will acquire legal title to the AFS portfolio and take responsibility for servicing at migration, which is expected to occur in Q1 2026," Sainsbury's said.
NewDay is a specialist consumer credit platform provider. It already provides credit services for retailers including John Lewis Partnership and AO World PLC.
Sainsbury's added: "Consistent with the October 2024 announcement, we continue to expect Sainsbury's Bank to return excess capital of at least GBP250 million to Sainsbury's and Sainsbury's continues to intend to return this capital to shareholders."
Sainsbury's will update on the timing of returns in annual results set to be released next month, it added.
Back in June, Sainsbury's agreed to sell the personal loan, credit card, and retail deposit portfolios of Sainsbury's Bank to NatWest Group PLC and last month announced the sale of the bank's ATM business to NoteMachine.
Sainsbury's shares were 1.1% lower at 255.80 pence each in London on Monday morning. The wider FTSE 100 index was 0.5% higher.
By Eric Cunha, Alliance News news editor
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