StockMarketWire.com - Tesco's banking arm confirmed that it had completed the sale of its mortgage portfolio to Lloyds Banking Group for around £3.8bn.

Tesco Bank currently had over 23,000 mortgage customers and the portfolio had a lending balance of about £3.7bn.

It generated directly attributable pre-tax profits of £9.1m in the 2019 financial year.

'The sale is in line with Tesco Bank's strategy of focusing on a reduced number of products and services that serve the broad range of Tesco customers, and will reduce operating and funding costs,' Tesco said.

The sale proceeds would be used reinvest in Tesco's customer offer, ongoing transformation of the business and re-balancing of retail and wholesale funding sources, given the reduction in overall lending. Story provided by StockMarketWire.com