Sainsbury's announced its exit from the UK mortgage market, finalising the sale of its £467 million net mortgage book to The Co-operative Bank.
The deal is set to bring £464 million into the bank, optimising funding costs without affecting the group's balance sheet.
The move follows Sainsbury's 2019 decision to cease mortgage sales, aligning with a strategic reshaping of financial services in a complex market.
The profit contribution from the mortgage portfolio in 2023 was around £4 million.
Sainsbury's intends to utilise the proceeds to optimize its bank's overall funding.
Sainsbury's Bank chief executive Jim Brown highlighted the sale as a step towards simplification and focus on offering efficient financial services to loyal customers.
The move underscores Sainsbury's ongoing resilience and strategic decisions to sustain dividends, said house broker ShoreCap.
Shares were flat at 266p.