J Sainsbury to Sell Core Banking Business to NatWest Group

By Ian Walker

J Sainsbury is selling its core banking business to NatWest Group for an undisclosed sum, as part of its previously announced plan to withdraw from the segment and focus on its retail business.

The U.K.'s second largest grocer by market share said Thursday that the final consideration will reflect the value of assets and liabilities to be transferred to NatWest at completion. It expects to write down a net 45 million pounds ($57.2 million) on the business' assets and liabilities.

Sainsbury said the bank will return GBP250 million of excess capital back to the company which it will then return to shareholders. It didn't say how this will happen.

The grocer said the sale excludes the bank's commission income businesses, including insurance, ATMs and travel money which are capital-light profitable businesses with a strong connection to its core retail offer.

The sale also excludes Argos Financial Services.

Separately NatWest said that it expects to buy GBP2.5 billion of gross customer assets of the bank.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

June 20, 2024 02:37 ET (06:37 GMT)

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