Tesco Bank has poured
cold water on press reports that it has been forced to delay the
launch of its first mortgage products.
A Tesco Bank spokesman stressed to
RBI that its discussions with the regulator were ongoing
and constructive.
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He added:
“We are
making good progress with our mortgage launch plans. We’re
confident that our initial entry into the mortgage market will see
us offer a great value product with the convenience and simplicity
that Tesco customers expect.
“We are in the advanced
stages of the regulatory process and will be in position to provide
details of the launch soon.”
Tesco Bank’s
expansion into mortgages and current accounts – in particular,
account switching incentives it may have in mind and its pricing
strategy – have been the source of much discussion in the
sector.
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said:
“The strategy
of some of the high street banks to gain market share has been
crazy. This is not our strategy. Nor will we use mortgage brokers
in an attempt to win market share.
“We are
setting up a product architecture to serve customers well. We want
Tesco to create a large-scale product strategy, but if in two or
three years’ time the mortgages market is bad, we will stop
offering mortgages.”
For the 12
months to 26 February, Tesco Bank posted a trading profit of £264m,
increased revenues by 6.9% to £919m and has a Core Tier 1 capital
ratio of 15.9%.
Customer
numbers in active credit cards grew by 11%, personal loans by
17%.
