Sainsbury’s new chief executive is considering a sale of the company’s banking arm as record-low interest rates continue to threaten its profitability, reported the Financial Times.
Simon Roberts, who took over from Mike Coupe as chief executive in June, has sought advice on a potential sale of Sainsbury’s Bank from its corporate broker and financial adviser UBS, according to a person with knowledge of the situation.
The news was first reported by Sky on Saturday, October 31. The possible sale of the unit, which provides products including mortgages, credit cards, and insurance to more than 2 million customers, follows a difficult period for small and medium-sized banks whose profitability has been depressed by persistently low interest rates.
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