British supermarket Sainsbury's said it has sold its Argos Financial Services cards portfolio to NewDay Group for an expected £720m in line with its strategy to focus on its core retail business.
Britain's second largest supermarket group after Tesco said it had also formed a partnership with financial services firm NewDay to create a new Argos-branded digital credit offer for the general merchandise business.
Sainsbury's announced a phased withdrawal from its core banking business in January and in June struck a deal to sell most of its banking operation to NatWest.
Last month, Sainsbury's also sold its cash machine operation to NoteMachine.
It expects the combination of commission income from insurance, travel money and ATMs alongside income from the NewDay partnership to deliver sustainable annual income of at least £40m in the financial year to March 2028.
Sainsbury's also expects Sainsbury's Bank to return to it excess capital of at least £250m which it plans to return to shareholders.
Shares in Sainsbury's are down over 13% so far this year.
The group is due to publish first half results on November 7.
