NatWest Acquires Sainsbury’s Bank in £2.5 Billion Deal

NatWest, a partially state-owned bank in the UK, has struck a £2.5 billion deal to acquire Sainsbury’s Bank. This move significantly expands NatWest’s customer base by bringing in an additional 1 million customers.

Ken Brown / Sainsbury’s, Dartford

The acquisition aligns with NatWest’s growth strategy under its new CEO, Paul Thwaite, who took the helm earlier in 2024. The deal brings NatWest £1.4 billion in personal loans and £1.1 billion in credit card balances currently held by Sainsbury’s Bank customers.

This acquisition strengthens NatWest’s position in the unsecured personal lending and credit card market, an area where they have historically held a smaller market share compared to some competitors.

Sainsbury’s, seeking to streamline operations and focus on its core food business, had been actively searching for a buyer for its banking arm. Interestingly, the agreement includes a £125 million fee paid by Sainsbury’s to NatWest to facilitate the takeover of its banking operations.

Sainsbury’s Bank’s journey began in 1997 as a joint venture with the Bank of Scotland. Sainsbury’s acquired full ownership in 2014. However, in January 2024, they announced plans to exit the financial services sector to focus on their core supermarket business.

This acquisition follows a recent trend in the UK supermarket industry. In February 2024, Tesco sold its retail banking operations to Barclays for £600 million. Similar to the NatWest-Sainsbury’s deal, Barclays acquired Tesco Bank’s credit cards, loans, and savings accounts, while also agreeing to market Tesco-branded banking services.

Screenshot at AM

Elden Ring DLC Release Time: The Shadow of the Erdtree Countdown is On


Kylie Jenner Breaks Down in Tears Over ‘Old’ Comments from Trolls