Sainsbury’s Bank has announced that it is to stop selling mortgages with immediate effect.
As part of its five-year plan for financial services, it will also end all group capital injections after £35 million in 2019/20. Sainsbury’s Group Chief Executive Mike Coupe said the bank “is too expensive to run” and that its cost-income ratio would fall to 50% over five years, from its current level of 71%
In a trading update, it warned that profits for the six months to September 21 are likely to be around £50m lower than the same period last year. It also announced plans to close up to 70 Argos stores and to instead open concessions for the catalogue retailer in supermarket branches.
Sainsbury’s re-entered the mortgage market in 2017 after previously offering home loans up until 2004.