Tesco asks Goldman Sachs to find buyers for banking business

Bloomberg reports Tesco has started the process for the potential sale of Tesco Bank. They've appointed Goldman Sachs as an advisor to seek out buyers. No comment yet from Tesco nor GS.
Tesco Bank sold its mortgage book to Lloyds in 2019 and shut down its current accounts in 2021. Its main offerings now are savings accounts, credit cards, personal loans and insurance products. The Internet Saver has been quite competitive given its instant access, and I see the Foundation credit card as a common option for a credit-builder card. Perhaps they'll be a more attractive proposition than The Co-operative Bank, which has also reportedly been looking for a buyer.


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  • wmb194
    wmb194 Posts: 3,091
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    edited 18 October 2023 at 10:32AM
    ircE said:
    Bloomberg reports Tesco has started the process for the potential sale of Tesco Bank. They've appointed Goldman Sachs as an advisor to seek out buyers. No comment yet from Tesco nor GS.
    Tesco Bank sold its mortgage book to Lloyds in 2019 and shut down its current accounts in 2021. Its main offerings now are savings accounts, credit cards, personal loans and insurance products. The Internet Saver has been quite competitive given its instant access, and I see the Foundation credit card as a common option for a credit-builder card. Perhaps they'll be a more attractive proposition than The Co-operative Bank, which has also reportedly been looking for a buyer.


    That's funny because when I looked at its recent H1 2023 results I thought to myself, "it's obviously non-core so why is Tesco keeping it?" See below, with retail adjusted operating profit of £1,417m vs. Tesco Bank's relatively puny £65m.

    https://www.londonstockexchange.com/news-article/TSCO/tesco-plc-interim-results-23-24/16151680


  • They are still opening new accounts.
  • Albermarle
    Albermarle Posts: 20,994
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    They are still opening new accounts.
    I think that is pretty normal. They are not in any financial trouble and a sale could take ages.
  • lr1277
    lr1277 Posts: 1,613
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    I wonder if GS will taken on Tesco's business themselves and expand their Marcus offering?
  • lr1277
    lr1277 Posts: 1,613
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    edited 18 October 2023 at 5:07PM
    Thanks @wmb194.
    Sorry to bring politics into this but I was thinking whether GS would behave in the same way as !!!!!! Cheney.
    He was asked to find a vice presidential candidate for GW Bush and ended up nominating himself. Ha ha.
    But you are right about the conflict of interest whilst they remain as an advisor.
  • Lions_89
    Lions_89 Posts: 150
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    Who provides the banking system? HSBC? 
  • gt94sss2
    gt94sss2 Posts: 5,603
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    Lions_89 said:
    Who provides the banking system? HSBC? 
    RBS/NatWest 
  • gt94sss2
    gt94sss2 Posts: 5,603
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    lr1277 said:
    I wonder if GS will taken on Tesco's business themselves and expand their Marcus offering?
    Goldman Sachs seem to be closing/withdrawing their Marcus brand in the US.

    As such, I seriously doubt it's going to expand if the UK. 
  • WillPS
    WillPS Posts: 3,002
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    edited 19 October 2023 at 11:16AM
    gt94sss2 said:
    Lions_89 said:
    Who provides the banking system? HSBC? 
    RBS/NatWest 

    Not true. AIUI they have their own implementation of the Natwest Group credit card system, just as Sainsbury's Bank have something they inherited from HBOS, but in each case it is maintained and developed (or not) by the bank.

    Savings and current accounts is all their own stuff, using HSBC for clearing.
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