Tesco is selling its banking business to Barclays for £600m after running it for 27 years

TESCO has transferred its banking business to Barclays for £600 million – after running it for 27 years.

Barclays said there will be no changes for Tesco's 5 million banking customers for the time being as the company takes over its operations. credit cardsloans, savings and checking accounts.

Tesco, which sold its mortgage business five years ago, will continue to offer insurance and travel money.

There will be no job losses if Tesco's 2,800 bank staff move to Barclays.

The retailer first launched its bank in 1997 in a deal with Royal Bank of Scotland but it was bought up by RBS in 2008.

Tesco boss Ken Murphy said the deal will deliver “greater value for customers and for our business”.

Barclays boss CS Venkatakrishnan called it a “further demonstration of the investments we continue to make in our UK consumer business”.

Barclays will give Tesco an annual income for using its brand.

Russ Mould, investment director at AJ Bell, said: “We are in an era where companies are going back to basics – focusing on what they do best and outsourcing or selling off non-core activities.”

He said the move was a recognition by Tesco “that its time is better spent on the bread and butter, not the jam on the side”.

Sainsbury's said last month it planned to offload its bank so it could focus on its food business.

Toll on the Belway

BUILDER Bellway said residential income fell by a third to £1.25 billion in the past six months, while completions fell by a third to 4,092.

The average sales price of completed properties fell from £316,929 to £309,300.

But the company said lower mortgage rates will boost sales this year.

Trend up

French fashion company Hermes said profits grew 28 percent last year to £11.4 billion, bucking the trend among luxury rivals.

Chairman Axel Dumas said: “In 2023, Hermes has once again cultivated its individuality.”

The company will pay a £3,400 bonus to all its 22,400 employees.