The news comes after the bank announced it had achieved £65m underlying profit over the past year.
Sainsbury’s also revealed it was making good progress on its transition to a new, more flexible banking platform with transition costs set to be at the top of the £340m to £380m range.
The bank expected that operating profit will be around 10% lower next year due to the investment required to enter the mortgage market but was optimistic about the launch.
“Given the Bank's strong trading performance and the trust people have in the Sainsbury's brand, we have decided to launch new mortgage products in 2017,” Sainsbury’s stated.
“We believe these products will complement our existing financial services portfolio and we expect customers to respond well.”
Sainsbury’s Bank currently offers savings accounts, personal loans and home insurance products.
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