In its preliminary results, it said that the Bank's trading performance supports its plans to launch a mortgage range. Sainsbury's Bank achieved £65 million underlying profit in 2015.
In 2016/17, Sainsbury's expects Bank operating profit to be around 10% lower year-on-year due to investment required to enter the mortgage market and the impact of reduced interchange fees.
In its results, Sainsbury's said:
"We are making good progress on our transition to a new, more flexible banking platform and total transition costs are forecast to be at the top of the £340 million to £380 million range."
Last month, Tesco Bank announced its launch into the broker market with Tesco Mortgage Intermediaries.
