Tesco : TPF PLC-new mortgage lending / mortgage portfolio

Tesco Personal Finance PLC: RNS Announcement

Released: 21.05.2019

Tesco Personal Finance PLC

21 May 2019

Tesco Personal Finance PLC to cease new mortgage lending and explore sale of mortgage portfolio

Tesco Bank has today announced that it has ceased new mortgage lending and is actively exploring options to sell its existing mortgage portfolio, including the complete transfer of related balances and ongoing administration of relevant accounts. The Bank, which has offered mortgages since 2012, currently serves over 23,000 customers with total lending balances of £3.7bn.

Gerry Mallon, Chief Executive Tesco Bank said:

'In recent years, challenging market conditions have limited profitable growth opportunities. Our focus is on how we best serve Tesco customers and align our resources effectively to their needs while ensuring that our offer remains sustainable in the long term.

To that end, we have made the strategic decision to focus on serving a broader range of customers in more specific areas, which means moving away from our mortgage offer. We have therefore chosen to cease lending to new customers and announce our intention to explore a sale of our portfolio. Our priority in any sale, is to complete a commercially acceptable transaction with a purchaser who will continue to serve our customers well'.

There is no certainty that any transaction will result from Tesco Bank's exploration of options to sell its existing mortgage portfolio, nor as to the terms on which it might be transacted. A further announcement will be made in due course should this be required at the relevant time. Until such time, the sale process remains confidential. If a transaction is confirmed, Tesco Bank will notify existing customers to explain what the sale means for their account.

This announcement contains inside information.

The person responsible for arranging for the release of this announcement on behalf of Tesco Personal Finance PLC is Michael Mustard (Company Secretary, Tesco Personal Finance PLC).

-End-

Further information, please contact:-

Media:

Chris Sibbald, Head of Communications, Tesco Personal Finance PLC

[e-mail]

[phone]

Adam Treslove, Head of Media Relations and Public Affairs, Tesco Personal Finance PLC

[e-mail]

[phone]

Simon Rew, Corporate Communications, Tesco plc

[e-mail]

01707 918701

Investor:

Chris Griffith, Tesco Plc - 01707 912 900