Tesco has sold its banking business to Barclays for £600 million after managing it for nearly three decades. Barclays has assured Tesco's 5 million bank customers that there will be no immediate changes to their credit cards, loans, savings, and current accounts. Tesco will continue to provide insurance and travel money services. The deal will not result in any job losses, as Tesco's 2,800 banking staff will transition to Barclays. Tesco initially launched its bank in 1997 through a partnership with Royal Bank of Scotland, but it was later acquired by RBS in 2008. Both Tesco and Barclays expressed optimism about the deal, with Tesco's CEO stating that it will bring greater value to customers and the business, and Barclays' CEO emphasizing their ongoing investment in their UK consumer business.
Tesco focuses on core business as it sells banking arm to Barclays
Tesco's decision to sell its banking business to Barclays reflects a trend among companies to concentrate on their core operations. The move allows Tesco to prioritize its main retail business, while Barclays gains a new source of income by utilizing Tesco's brand. This follows Sainsbury's announcement last month that it plans to offload its bank in order to focus on its food business. Industry experts see these actions as a strategic shift towards streamlining operations and maximizing efficiency.
Bellway reports decrease in housing revenue, but expects boost from lower mortgage rates
Builder Bellway has experienced a 33% decline in housing revenue to £1.25 billion in the past six months, with completions also decreasing by a third to 4,092. The average selling price of completed properties has dropped to £309,300. However, the company remains optimistic about the future, as it anticipates a boost in business due to lower mortgage rates. Bellway believes that these favorable rates will attract more buyers and drive growth in the housing market.
Hermes bucks the trend with 28% profit growth
In contrast to its luxury rivals, French fashion business Hermes has reported a 28% increase in profits, reaching £11.4 billion last year. Chairman Axel Dumas credited the company's success to its unique approach and stated that Hermes has maintained its singularity in 2023. As a reward for their contributions, all 22,400 Hermes staff members will receive a bonus of £3,400.
