Tesco Bank has revealed that it is planning to sell mortgage products through intermediaries after revealing an increase in profit before tax.
< 
div>The lender made the announcement at the same time as revealing that its profit before tax increased to £187.9m in the 12 months to 29th February 2016, 11.7% higher than the previous year.
Its mortgage balance reached £1.67bn, a 39.5% increase on the previous 12 months.
During the year, Tesco Bank introduced a 95% loan-to-value mortgage product and expanded its range of loan sizes to widen the options available to customers.
The group’s plan to enter the intermediary market comes after Tesco Bank was named ‘Best Direct Mortgage Provider’ at the 2015 Moneynet Awards.
Michael Mustard, Company Secretary of Tesco Bank, said: “The group continues to develop its suite of products and services to best meet the needs of Tesco customers.
“A number of improvements for customers are planned over the coming year, including the introduction of mortgage products sold through intermediaries.”
Tesco Bank also revealed that it had been closely monitoring regulatory developments by the European Banking Authority, the Prudential Regulatory Authority and the Bank of England on topics which could impact its capital and funding requirements.
“This included proposed changes to standardised risk weightings and the implementation of the European Commission's minimum requirements for own funds and eligible liabilities,” said Michael.
“The group is actively engaged in the consultation process and is expecting the impact of these changes to be clarified during 2016.”
Overall, Tesco Bank advanced £8.5bn of loans, including personal loans and mortgages to customers in 2016, an increase of 10.6% on the previous year.
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