Business
Sainsbury’s Bank sells mortgage portfolio
Sainsbury’s Bank sells mortgage portfolio.
About this update from J Sainsbury Plc
[{"type":"text","content":"\n\n11 August 2023\n \nSainsbury's Bank confirms sale of mortgage portfolio to The Co-operative Bank\n \nJ Sainsbury plc (\"Sainsbury's\") today confirms that Sainsbury's Bank plc (\"Sainsbury's Bank\") has agreed to sell its mortgage portfolio to The Co-operative Bank p.l.c. (\"The Co-operative Bank\") for a cash consideration of around £464 million*, payable at completion. The gross asset value of the mortgage book at 30 April 2023 was £479 million (£467 million net asset value after hedging). The sale follows the September 2019 announcement by Sainsbury's Bank that it would be stopping all new mortgage sales and was reviewing options for the existing mortgage book.\n \nThe deal is expected to complete alongside transfer of beneficial ownership on 15 August 2023, with legal title transfer occurring within 12 months. Following a period of transition of up to one year from completion, Sainsbury's Bank mortgage customers will transfer to The Co-operative Bank.\n \nSainsbury's Bank intends to use the proceeds from the transaction to help optimise the overall cost of funding for Sainsbury's Bank.\n \nIn the year ended 28 February 2023 the associated direct profit contribution of the mortgage portfolio was £4 million**. \n \nCommenting on the sale, Jim Brown, CEO of Sainsbury's Bank said: \"We're pleased to confirm we have agreed the sale of our mortgage book to The Co-operative Bank. Closing the chapter on our mortgage offering is a big step in simplifying our business.\n\"It's been really important throughout the process that we find a buyer that will best meet the needs of our customers. We chose The Co-operative Bank as it's a well-known UK mortgage provider, committed to providing excellent customer service, so we are confident that The Co-operative Bank will serve our customers well. \n\"The sale of the mortgage book will support our strategy to reshape our portfolio and focus on offering capital and cost efficient, mobile-led financial services to loyal Sainsbury's and Argos customers.\"\nNick Slape, CEO of The Co-operative Bank said: \"We are delighted to have agreed this transaction with Sainsbury's Bank. Once the transfer activity is complete, we look forward to welcoming the new customers who will benefit from our ambitious new technology platform, which will simplify ou...