Tesco will return £700m to shareholders after completing the sale of its banking business to Barclays.
Britain’s largest supermarket group said it would begin a share buyback after completing a previous £1billion buyback programme that is still ongoing.
Shares rose almost 1.7 per cent, or 5.8p, to 348p yesterday. They are up by 20 per cent for the year to date.
Investors have been attracted by record profits and growing market share – despite fierce competition from discount rivals Aldi and Lidl since the cost-of-living crisis.
The grocer has now begun a ten-year partnership with Barclays, which will supply Tesco-branded banking products.
Barclays has paid around £600m for Tesco’s credit cards, unsecured personal loans, and savings business.
The supermarket continues to operate its own insurance business as well as cash points and travel money services.
Vim Maru, chief executive of Barclays’ UK operations, added: ‘We will bring the strength of both businesses together, benefiting customers and colleagues.’
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