NatWest has struck a deal to acquire most of the banking business of UK retailer Sainsbury's, the companies said today, in a deal set to grow the British lender's assets by £2.5 billion.
The first major transaction executed by CEO Paul Thwaite since formally taking the role last year will also see its customer accounts rise by around 1 million, in line with the lender's strategy to ramp up its retail banking business.
The deal is the latest banking business disposal by a major British retailer, after rival supermarket chain Tesco offloaded most of its banking activities to Barclays in a £600m deal earlier this year.
"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," Thwaite said in a statement.
"NatWest Group has a strong track record of successful integration, and we are focussed on ensuring a smooth transition for customers," he added.
The assets acquired include £1.4 billion in unsecured personal loans, £1.1 billion in credit card balances, along with around £2.6 billion of customer deposits.
The deal is expected to close on in March 2025 and NatWest will receive an agreed £125m consideration payment from Sainsbury's at completion.
This transaction is expected to have a 20 basis point impact on NatWest's core capital ratio.
