Table of Contents
Tesco will return £700m to shareholders after completing the sale of its banking business to Barclays.
Britain’s largest supermarket group said it would begin a share buyback after completing an earlier billion-pound buyback program that is still ongoing.
The shares rose almost 1.7 per cent, or 5.8p, to 348p yesterday. So far this year, they are up 20 percent.
Every little bit helps: Tesco to return £700m to shareholders after completing sale of banking business to Barclays
Investors have been attracted by record profits and growing market share, despite fierce competition from discount rivals Aldi and Lidl since the cost of living crisis.
The grocer has entered into a ten-year partnership with Barclays, which will supply Tesco-branded banking products.
Barclays has paid around £600m for Tesco’s credit cards, unsecured personal loans and savings business.
The supermarket continues to run its own insurance business, as well as ATMs and travel money services.
Vim Maru, chief executive of Barclays’ UK operations, added: “We will bring together the strength of both businesses, benefiting clients and colleagues.”
DIY INVESTMENT PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-to-use portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free Fund Trading and Investment Ideas
interactive inverter
interactive inverter
Fixed fee investing from £4.99 per month
sax
sax
Get £200 back in trading fees
Trade 212
Trade 212
Free trading and no account commission
Affiliate links: If you purchase a This is Money product you may earn a commission. These offers are chosen by our editorial team as we think they are worth highlighting. This does not affect our editorial independence.