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Highlights
- NewDay Group has officially acquired beneficial title to the Argos Financial Services (AFS) card portfolio.
- Legal ownership and servicing responsibilities will transfer to NewDay by Q1 2026.
- Sainsbury’s Bank expects to return at least £250 million in excess capital to shareholders.
J Sainsbury PLC (LSE:SBRY) has announced that NewDay Group has successfully completed the acquisition of the Argos Financial Services (AFS) card portfolio, following the necessary financing and antitrust approvals. The announcement marks a key milestone in the deal first revealed in October 2024, as Sainsbury’s continues to streamline its financial services operations.
While NewDay has now secured beneficial ownership of the portfolio, the legal title transfer and full servicing responsibilities will be finalized during the migration process, which is expected to complete in the first quarter of 2026.
Smooth Transition and Future Plans
NewDay, a leading provider of consumer credit services, is set to manage the AFS card portfolio post-migration, bringing its expertise to ensure a seamless transition for cardholders. Customers can expect continued service during the transition, with no immediate changes to their existing accounts.
Sainsbury’s Bank, meanwhile, remains focused on optimizing its capital position. Consistent with previous announcements, the bank anticipates returning at least £250 million in excess capital to Sainsbury’s PLC. The company has reiterated its intention to pass this capital back to shareholders, reinforcing its commitment to delivering value.
An updated timeline for the capital return is expected to be shared alongside Sainsbury’s Preliminary Results in April 2025.
Strategic Refocus for Sainsbury’s
The sale of the AFS portfolio aligns with Sainsbury’s broader strategy to concentrate on its core retail operations and simplify its financial services offering. By offloading the card portfolio, the company can reallocate resources, strengthen its balance sheet, and prioritize its grocery and general merchandise businesses.
For NewDay, the acquisition presents an opportunity to expand its customer base and enhance its market presence, leveraging the established Argos brand and its loyal consumer following.
