Sainsbury's to buy banking business outright as profits dip

clock

Supermarket giant Sainsbury's is to take full control of its banking franchise after agreeing to buy Lloyds' 50% stake in the business for £248m.

The grocer confirmed it was buying the business from Lloyds 16 years after it first launched the bank in 1997. Unlike the main high street rivals, it has no funding issues, and profit before tax was £59m this year. Justin King, chief executive of Sainsbury's, said: "This is an exciting transaction for Sainsbury's which has the potential to deliver significant benefits to our shareholders, customers and colleagues. "We have 23 million transactions each week by customers who know and trust the Sainsbury's brand. We see a great opportunity to increase the number of Bank customers by o...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Four reasons why direct engagement can still make a difference

Four reasons why direct engagement can still make a difference

'Quantitative data arguably tells only half the story'

Simon Wood
clock 05 March 2026 • 4 min read
Darius McDermott: Is income under pressure?

Darius McDermott: Is income under pressure?

‘The period of abundant income is ebbing'

Darius McDermott
clock 04 March 2026 • 5 min read
Investors told 'hold your nerve' as Iran strikes drive volatility

Investors told 'hold your nerve' as Iran strikes drive volatility

Ongoing conflict impact

Linus Uhlig
clock 02 March 2026 • 3 min read