Tim Pile steps down as CEO of Sainsbury's Bank |
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Tue, 21 Mar 2006 20:05
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LONDON - J Sainsbury has announced that the chief executive of its Sainsbury's Bank Tim Pile has agreed to quit. Pile, who has been at the helm of the Bank for four years, will be replaced for the time being by Jim Kinloch until a successor is found. Darren Shapland, chief financial officer of Sainsbury's will handle the operating board responsibility at the Bank.
"Tim has been with the bank for more than four years, and has led us through a period of enormous change As the bank continues to grow we believe it is now the right time to look for new leadership," said a statement issued by Sainsbury Chief Executive Justin King. Mr Pile, who joined Sainsbury's in 2002 from Alliance & Leicester, refused to comment and only said, "What's important is that it is business as usual."
The Bank said Pile had agreed to quit through "mutual consent." It did not disclose any details regarding his pay-off. This news comes even as fears grow that the supermarket-banking model has failed as consumers are struggling to make repayments in what is a turbulent period in the British economy.
The Sainsbury’s Bank had posted a £5 million loss in the first half of the current financial year and Pile's position was shaky since then. The Bank is a joint venture with HBOS Plc and was founded in 1997. The bank generated its first profit in 1999, but began to slide after 2002.
The problem now is that even though the customer numbers are ever increasing, bad debts spiraled to 68 percent in the first half. Sainsbury's has admitted that second half results could be pretty similar to first half ones. Under the circumstances, the Bank said it was unlikely to meet its three-year profits target of £90 million.
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