Tesco is buying Royal Bank of Scotland's 50 per cent stake in joint venture Tesco Personal Finance (TPF) for £950m as it repositions itself to focus on financial services and telecoms in the face of slowing growth in food.
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Tesco's services division last reported profits of £400m, half of which came from TPF. Management expect this to rise to £1bn within a decade.
Initially there will be increased presence in stores, a wider range of savings products and later a current account product to add to its existing offering of insurance, credit cards and personal loan products. There are also plans to expand overseas.
