NatWest Group to Acquire Sainsbury’s Bank in Major Retail Banking Deal

NatWest Group plc has struck a deal to purchase Sainsbury’s Bank, adding £2.5 billion in customer assets and one million accounts to its portfolio.

NatWest Group plc has recently announced a significant agreement with Sainsbury’s Bank plc to acquire the retail banking assets and liabilities of the latter. This acquisition includes outstanding credit card, unsecured personal loan, and saving accounts, amounting to approximately £2.5 billion in gross customer assets. The transaction also involves the addition of around one million customer accounts to NatWest Group.

Upon completion, this acquisition is expected to have a 20 basis point impact on NatWest Group’s CET1 ratio and be EPS and RoTE accretive. The transaction will be carried out through NatWest Group’s subsidiary, National Westminster Bank plc, under Part VII of the Financial Services and Markets Act 2000. Completion is subject to court sanction and regulatory approval or non-objection, with an expected timeline in the first half of 2025.

It is important to note that the operational infrastructure and commission income businesses of Sainsbury’s Bank, including ATMs, insurance, and travel money, are not part of this transaction. Additionally, Argos Financial Services is excluded from the transaction perimeter. The forecasted balance sheet and account values are based on information provided by Sainsbury’s Bank and may vary at completion.

As part of the agreement, an agreed £125 million consideration will be payable from Sainsbury’s Bank to NatWest Group, reflecting the value of assets and liabilities transferred. There will be no immediate changes for new customers, who will be contacted in due course.

The acquisition of Sainsbury’s Bank’s retail banking assets and liabilities by NatWest Group marks a significant development in the banking sector, with potential benefits for both parties involved.