Sainsbury’s has confirmed the sale of the Argos Financial Services (AFS) card portfolio to NewDay Group.

The deal, which was first announced last October, has gone through after NewDay successfully obtained the appropriate financing and antitrust approvals to acquire the beneficial title to the AFS Portfolio.

NewDay will acquire the legal title to the AFS portfolio and take responsibility for servicing at migration, which is expected to take place in Q1 2026.

In a statement to the Lon Stock Exchange, Sainsbury’s said: “Consistent with the October 2024 announcement, we continue to expect Sainsbury’s Bank to return excess capital of at least £250m to Sainsbury’s and Sainsbury’s continues to intend to return this capital to shareholders. We will provide a further update on timings with preliminary results in April 2025.”

The supermarket also confirmed that customers with an Argos-branded store card do not need to take any action.

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