View more on these topics

Sainsbury’s Bank becomes joint venture with HBOS

HBOS has bought an additional 5 per cent of the shareholding in Sainsbury’s Bank for £21m bringing its total ownership to 50 per cent.

Sainsbury’s Bank which began trading in February 1997 is now a 50:50 joint venture between HBOS and J Sainsbury.

Previously, the ownership structure was 55 per cent Sainsbury’s and 45 per cent HBOS.

The change in ownership follows a business review jointly carried out by both companies.

The Board of Sainsbury’s Bank will comprise of eight directors – three directors from HBOS, three from Sainsbury’s and two executives from Sainsbury’s Bank.

HBOS Retail chief executive Benny Higgins will be the new chairman for a period of two years.

J Sainsbury’s chief financial officer Darren Shapland will then assume the role.

Sainsbury’s Bank provides a range of financial products including insurance, credit cards, savings and loans. The Bank has access to over 16 million customers per week through the 780 Sainsbury’s stores across the UK.

Higgins says: “Sainsbury’s Bank has strong customer loyalty. The business has demonstrated it can acquire and retain customers very effectively. There is significant potential to grow the business. We aim to do just that.”

Shapland says: “We are committed to growing the Bank’s business and are increasing our presence in the financial services sector. The Bank’s chief executive, Rob Walker, is streamlining the operational structure and developing a broader business plan. The sale of our five per cent for £21 million demonstrates the value of the Bank and a 50:50 structure reflects the continued commitment of both shareholders’.”

Recommended

Business threat posed by rises in longevity

The FSA says increases in longevity is a major long-term threat to financial businesses.The regulator says: “Actual improvements in life expectancy may soon exceed the assumptions used in mortality tables produced by actuaries and there is not yet a way to hedge comprehensively against this uncertainty”.The warning comes in the FSA’s Financial Risk Outlook 2007, […]

Half of NPSS cash will be from churning

Pensions minister James Purnell has admitted that up to half of the money invested in personal pension accounts in 2012 is expected to be money switched from existing pension provision.In the second Pensions White Paper, the Government revealed estimates that personal accounts will take £8bn in the first year, 60 per cent of which will […]

Rock squares up to BM in Together price war

Northern Rock has reacted to the price war instigated by BM Solutions by slashing rates on its Together range.NR has introduced two new fixed rate deals starting at 5.65 per cent, and cut rates on its existing variable rate products to 5.89 per cent. It has also and increased the Help With Costs option to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment