Bank review

Sainsbury’s looking for £1.3bn from sale of mortgage book

Sainsbury's Bank hq

Sainsbury’s Bank is based at the Gyle

Sainsbury’s could be the second supermarket chain to offload its mortgage book following a review of its financial services arm.

The company is tipped to follow Tesco which sold its mortgage business to Lloyds for £3.8 billion earlier this month.

Both Tesco and Sainsbury’s banks are based in the Gyle business park in Edinburgh.

Sainsbury’s chairman Martin Scicluna has been assessing its banking operations since last November and is expected to present his findings to analysts at a strategy meeting on 25 September.

Its bank made a loss of £34m last year compared to a profit the year before and mortgages absorb more capital than its other products such as home insurance and credit cards.

The mortgage business could raise £1.3bn, according to the Sunday Telegraph, and ease pressure on group CEO Mike Coupe who is looking to get the company back on track after its merger with Asda was knocked back by competition watchdogs.

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