Tesco unveils share buyback after bank sale

Supermarket to sell its retail banking operations to Barclays but will hold onto its existing insurance and money services activities, such as ATMs, travel money and gift cards

British retailers such as Tesco and Sainsbury's have been exiting financial services after a largely unsuccessful attempt to add competition to the sector.

Shares in supermarket giant Tesco rose on Friday after the grocer unveiled plans to return £700m (€832m) to shareholders through a new buyback scheme following the completion of the sale of its retail banking operations to Barclays.

The new buyback will commence after Tesco finishes a £1bn share repurchase programme that is currently underway, according to a statement. The grocer’s shares rose as much as 1.1% in London.