Supermarket group Sainsbury PLC has confirmed the sale of the Argos Financial Services (AFS) cards portfolio to NewDay Group.

Back in October 2024, Sainsbury’s announced the sale of the AFS card portfolio to NewDay Group, with the group now successfully obtaining the appropriate financing and antitrust approvals, completing the acquisition.

“NewDay will acquire legal title to the AFS portfolio and take responsibility for servicing at migration, which is expected to occur in Q1 2026,” a statement said.

“Consistent with the October 2024 announcement, we continue to expect Sainsbury’s Bank to return excess capital of at least £250 million 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.

“Customers with an Argos-branded store card do not need to take any action as a result of this announcement. There will be no immediate changes to AFS customers’ existing terms and conditions.”