Retail giant Sainsbury’s has announced that it will close its Edinburgh-based banking division, with an operational update also stating that chief executive Jim Brown will retire, to be replaced by former head of Allied Irish Bank’s UK division, Robert Mulhall, in March.

There will be no immediate impact on the service’s 1.9 million customers, with the outgoing Brown stating, “we will of course communicate directly to customers well in advance of any changes to their products and services.”

He added: “We have been clear since we launched our food first strategy in 2020 that we would concentrate our efforts on our core retail businesses and today’s announcement reflects that strategic focus..

“It’s business as usual for now at Sainsbury’s Bank and there will be no immediate changes to products and services as a result of today’s announcement.”

Starting as a 50/50 collaboration with Bank of Scotland in 1997, the former Sainsbury’s chief executive, Justin King, acquired the bank’s stake for £248 million in 2014.

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Yet, there’s been notable shift in strategy over the past decade, with Sainbury’s banking offerings playing an ever diminishing role in the company’s bottom line. The half-year operating profits emanating from financial services, encompassing the bank, has dwindled from £19 million to £13 million on a year-on-year basis.

In a strategic move last summer, Sainsbury’s opted to divest its mortgage book, completing a sale to the Co-operative Bank for £464 million.