Revenues have fallen at Edinburgh-headquartered Tesco Bank and sales at its UK supermarket arm declined again, heaping further pressure on group chief executive Philip Clarke, who is attempting to turn the business around.
Tesco blamed delays in moving customer accounts and increasing competition in the insurance market for a 3.7% fall in income at its banking arm for the 13 weeks to May 26, compared to the same period last year. Meanwhile, UK like-for-like sales, excluding fuel and value added tax were down 1.5% year-on-year, a slight improvement on the 1.6% fall in the previous quarter.
Tesco Bank, which until 2008 was a joint venture with Royal Bank of Scotland, is headed by former RBS and Halifax Bank of Scotland executive Benny Higgins.
Tesco, the UK's biggest supermarket chain, shocked investors in January by issuing its first profit warning for two decades.
It parted company with UK chief executive Richard Brasher in March with Mr Clarke taking control. In April the group said it would spend £1 billion turning around its UK business, which accounts for 70% of total profits.
Read more: Pressure on new Tesco boss as bank struggles | Herald Scotland
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