20th Feb 2023 06:38
(Alliance News) - Tesco PLC is set to review options for the future of Tesco Bank, which could include a sale of the business, Sky News reported on Saturday.
The supermarket chain will have investment bank Goldman Sachs Group Inc advise on the options for its retail banking arm, which first launched back in 1997.
Citing "City insiders", Sky reported that the review was in the very early stages and potentially may not result in a formal sales process.
One of Sky's sources indicated that a joint venture or partial sale of Tesco Bank was on the cards. The unit is estimated to be worth over GBP1 billion, according to a banking analyst cited by Sky.
https://news.sky.com/story/supermarket-giant-tesco-to-explore-sale-of-banking-arm-12813796
In the first half of Tesco's current financial year, its banking arm brought in revenue of GBP540 million and adjusted operating profit of GBP67 million.
Shares in Tesco had closed up 0.2% to 250.61 pence each in London on Friday. The shares are down 13% over the past year.
By Elizabeth Winter, Alliance News senior markets reporter
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