21st May 2019 07:44
LONDON (Alliance News) - Tesco PLC on Tuesday said that its banking division, Tesco Personal Finance PLC, will cease new mortgage lending as it explores options to sell its mortgage portfolio.
The bank, which has offered mortgages since 2012, currently serves 23,000 customers with total lending balances of GBP3.7 billion, Tesco explained.
Tesco Bank Chief Executive Officer Gerry Mallon said: "In recent years, challenging market conditions have limited profitable growth opportunities. Our focus is on how we best serve Tesco customers and align our resources effectively to their needs while ensuring that our offer remains sustainable in the long term."
"To that end, we have made the strategic decision to focus on serving a broader range of customers in more specific areas, which means moving away from our mortgage offer. Our priority in any sale, is to complete a commercially acceptable transaction with a purchaser who will continue to serve our customers well," Mallon added.
The UK biggest supermarket clarified that there is "no certainty" that a sale of the bank's portfolio will happen as a result of the lender's exploration of options.
If a transaction is confirmed, Tesco Bank said it will notify existing customers to explain what the sale means for their account.
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