Sainsbury’s begins search for new banking chief as Peter Griffiths prepares to retire

Sainsbury’s has begun the search for a new chief executive of its banking division after confirming Peter Griffiths will step down next year.

Griffiths, who has been in charge of Sainsbury’s Bank since 2012, will step down in 2020, Sky News first reported.

The supermarket chain confirmed it was in the “early stages” of finding a successor to the veteran banker.

It comes as the supermarket giant plans to diversify and grow its banking arm having acquired the Nectar customer loyalty scheme last year.

The Competition and Markets Authority (CMA) will also rule on the company’s £15bn merger with Asda, which could even lead to store closures.

In September the CMA warned the mega merger could harm competition in 463 local areas across the country, and launched a full investigation.

The company’s banking arm began trading in 1997 as a joint venture with the Bank of Scotland.

Now solely owned Sainsbury’s, the company reported in its half-yearly results in November that the bank had 1.95m customers, up five per cent on the previous year.

But profits were down 53 per cent to £16m, in line with its guidance due to reduced interest margins and increased impairments resulting from IFRS 9.

Griffiths served as chief executive of the Principality Building Society for a decade before joining Sainsbury’s in 2012.

He previously worked for Natwest from 1977 to 2000.

A spokesperson for Sainsbury’s said: “We can confirm that we are in the early stages of succession planning for Peter Griffiths, CEO of Sainsbury’s Bank, who plans to retire in 2020.”