Tesco is reportedly planning to review its presence in the UK banking sector through a sale of its banking arm, Tesco Bank, a new report has revealed.

According to Sky News, the UK’s leading supermarket has lined up Goldman Sachs to advise on the future of Tesco Bank.

The review is in very early stages, according to insiders, and may not lead to a formal sale process. A partial sale or joint venture may also be explored.

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Tesco Bank, which reported adjusted operating profits of £67m in its last half-year results, could be worth more than £1bn, according to a banking analyst.

The publication said there was no suggestions that the review of Tesco Bank could result in job losses or any form of wind-down.

Last month, Tesco Bank agreed to give over 3,400 staff members a £1,250 pay rise to help with recent cost-of-living challenges. Over 90% of its workforce are eligible for the wage increase, which was effective from 8 January 2023.