17th Nov 2020 13:23
(Alliance News) - J Sainsbury PLC on Tuesday confirmed it has received interest in Sainsbury's Bank, but said it remains focused instead on delivering on its five-year plan for the lending arm of the supermarket chain.
"We have received some very preliminary expressions of interest in the bank, but this does not mean anything will come of these discussions," Sainsbury said. "Our management team remains focused on delivering the plan" set out earlier this month.
This follows an article published by Sky News on October 31 which said Sainsbury's "has begun exploring a sale of the banking arm".
On Thursday last week, a follow-up article was published by Sky News saying that NatWest Group PLC was among the "suitors circling Sainsbury's Bank".
"City sources said that NatWest's interest was 'extremely preliminary' and might not lead to a formal offer for partial or full control of the business," Sky News noted.
https://news.sky.com/story/taxpayer-backed-natwest-among-initial-suitors-for-sainsburys-bank-12130791
The report was picked up by the Financial Times and Guardian newspapers.
Sainsbury's on Tuesday noted the "recent media speculation regarding a possible sale of Sainsbury's Bank", but reiterated its commitment to its plan for the bank.
"We set out a clear five-year plan for Sainsbury's Bank at our capital markets day in September, 2019," Sainsbury's said.
Sainsbury's confirmed the plan early in November with its interim results.
Sainsbury's said: "We have made good progress with our Financial Services transformation plan and streamlined our product offer. We still expect to double profit and returns in our Financial Services business within five years, despite the challenges of Covid-19. This reflects a strong balance sheet and effective cost management, and we remain confident that no capital injections will be required from the group."
Sainsbury's Financial Services arm is made up of Sainsbury's Bank and Argos Financial Services.
Sainsbury shares were up 0.9% at 211.20 pence each in London on Tuesday afternoon.
By Greg Roxburgh; [email protected]
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Related Shares:
Sainsbury'sNatwest