Tesco has reported pre-tax profits of £3.8bn and says it is on track to launch into the mortgage market this summer.
The supermarket giant says it has witnessed a strong growth in its banking arm’s deposit base, meaning it has an “excess” of deposits over loans as it builds it balance sheet ahead of the launch of its mortgage proposition.
A Tesco Bank spokeswoman says: “We are on track to launch into the mortgage market this summer.”
Tesco’s banking arm reported revenues of £919m in the 2010/11 financial year and a profit of £264m.
Tesco originally announced its intention to break into the mortgage market in April 2010.