RBS ready for tesco sale
Royal Bank of Scotland is close to selling its stake in Tesco Personal Finance to the supermarket group for up to £1billion, it emerged yesterday.
A deal could be announced within days as part of RBS’s plans to sell non-core businesses to strengthen its balance sheet and focus on its core banking operations.
Tesco Personal Finance, which celebrated its 10th anniversary this year, has more than 5million customers. Its products include insurance, credit cards, loans, mortgages and savings.
The retailer has lined up experienced banking executive Benny Higgins to run the business and a deal could be announced within days.
Higgins, a former head of retail at HBOS, headed the Tesco PF business during a long-running stint at RBS.
Other RBS assets up for sale include its Churchill and Direct Line insurance operations, although prospective buyers are thought to have balked at the £7billion price tag.
RBS could decide to hold on to them after bolstering its finances earlier last month through a record-breaking £12billion rights issue.