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NatWest (NYSE:NWG) purchased Sainsbury’s primary banking division as the UK grocery operator exits the industry to focus on food offerings.
NatWest Group (NWG) expects to acquire ~£2.5B gross customer assets, including £1.4B unsecured personal loans, £1.1B credit card balances, and ~£2.6B customer deposits.
As per the agreement, Sainsbury’s Bank’s credit cards, loans, and savings accounts would be acquired by NatWest (NWG), but not Sainsbury’s Bank’s commission income businesses, including insurance, ATMs, and travel money.
NatWest Group (NWG) will likely add ~1M customer accounts as a part of this transaction.
“This transaction is a great opportunity to accelerate the growth of our Retail Banking business at attractive returns, in line with our strategic priorities. As well as a complementary customer base, the transaction is expected to add scale to our credit card and unsecured personal lending business within existing risk appetite. ” Paul Thwaite, NatWest Group CEO, commented.
The transaction is expected to be completed in H1 2025.
The stock price was marginally higher by 1.12% on Thursday during pre-market hours of trade.
