Sainsbury’s Bank is currently a 50:50 partnership with Lloyds Banking Group. Sainsbury’s were the first British supermarket to open a bank (on 19th February 1997) and also the first to offer mortgages (my first mortgage was with Sainsbury’s in 1999 – I was only planning to buy the weekly groceries and ended up with a £60k mortgage for a flat in Walthamstow).
Sainsbury’s is planning to take full control of its banking services as soon as next week. It hopes to buy out the Lloyd Bank’s 50% stake in the business. Sainsbury’s will be announcing its annual results on Wednesday 9th May and it is expected that they will be making an official announcement following the reports.
Sainsbury’s has around 1,400,000 customers across a range of products from credit cards, insurance, loans, mortgages and investments.
The top managers are Sainsbury’s are all relatively new to the company. Peter Griffiths heads up Sainsbury’s Bank, in the 3 months following his appointment in November 2012 Sainsbury’s Bank reported that they had increased new business volumes by 37% year on year. David Arden, the finance director, joined in March 2012; Steve Burke, the Chief Operating Officer, started in March 2013 and Brian Monaghan, head of internal audit, joined in November 2012. All have a lot of experience in the banking and finance sector. They currently have several job opportunities in risk, marketing, audit and change / IT. They certainly appear to be planning something big.
Sainsbury’s Bank continues to grow and is in a very strong position to become an independent bank. Also, with the collapse of the deal between the Co-op and Lloyds to buy many of the old Lloyds high street banks, there could be an opportunity for Sainsbury’s to make a move on to the high street.
These changes will not affect Sainsbury’s banking customers, however, if you have any questions regarding the changes you can contact Sainsbury’s bank direct.
Sainsbury’s has made pre-tax profits of £750 million for 2012/2013. The bank has made an estimated annual profit of £25 million.