(Alliance News) -Â J Sainsbury PLC on Friday said it has decided to retain its banking arm after having spoken with possible buyers.
The grocer said it believed it was in the best interests of shareholders to explore expressions of interest for Sainsbury's Bank, but has decided that these do not offer better value than will be realised through keeping the unit. As such, talks over the bank have ended.
"We continue to make progress strengthening and simplifying our Financial Services business in line with our strategy and we remain comfortable with consensus profit forecasts for the division," said Sainsbury's.
It noted that current underlying operating profit consensus for Sainsbury's Bank lies at GBP26 million for the current financial year, rising to GBP43 million in the next.
Sanisbury's Financial Services unit made an underlying operating loss of GBP21 million in the financial year ended March 2021, swinging from a profit of GBP48 million the year before. Sainsbury's Financial Services arm is made up of Sainsbury's Bank and Argos Financial Services.
Shares in the grocer were down 0.7% at 294.11 pence in London early Friday.
By Lucy Heming;Â lucyheming@alliancenews.com
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Sainsbury's (SBRY)
