HSBC has become the latest name linked to a deal for Tesco Bank.

According to Sky News, HSBC has reportedly tabled an indicative offer for the supermarket’s retail banking business.

Tesco, which has spent the past 11 months attempting to offload the unit, also has reported interest from Barclays and Lloyds.

Any deal for the business would mostly be focused on its five million customers and 3,500-plus staff, with Sky News adding that the rights to use and Tesco-related branding would be licenced by the supermarket.

The business offers a range of products including credit cards, savings accounts and insurance. It no longer offers mortgages, having sold off its mortgage book to Lloyds in 2019 for a cash consideration of £3.8 billion.

Further consolidation in the UK banking sector is expected in 2024. The Co-operative Bank last month announced that it had entered exclusive talks to be sold to the Coventry Building Society, while Metro Bank could revisit a sale of its mortgage book after calling off talks with Barclays late last year.

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