History
Egg was established as a division of life assurance company Prudential. Prudential Banking was involved in direct selling of savings and mortgage products.
On 11 October 1998, the division was renamed Egg, and relaunched as the United Kingdom's first Internet bank.[5] The bank offered 8% savings interest, and the first credit card in the United Kingdom which offered a 0% interest rate on both new purchases and balance transfers, with an annual anniversary offer. As a result Egg soon had more than two million customers enjoying these market leading rates.
In June 2000, Prudential cashed in on its stake, and floated 21% of the company on the London Stock Exchange, retaining 79%. In January 2004, Prudential announced its intention to sell its remaining stake in Egg to a third party. Paul Gratton was chief executive of Egg in 2001.[2] Despite rumours of interest from the likes of Royal Bank of Scotland and HSBC, no formal offers were made public, and Prudential dropped its plans in August 2004.
Subsequently, Prudential bought back the remaining minority share in January 2006, and delisted the organisation from the London Stock Exchange. Chief executive officer Paul Gratton left the organisation in March 2006, to be replaced by then chief operating officer Mark Nancarrow. Nancarrow was subsequently replaced by Ian Kerr, formerly of HBOS, in November 2006.
On 29 January 2007, Prudential announced that it had agreed to sell Egg to Citigroup for a consideration of £575 million subject to approval by the Financial Services Authority.[6][7][8] On 1 May 2007, the sale of Egg to Citi was completed, and Egg CEO Ian Kerr was appointed head of Egg and Citi UK Consumer.[9]
At the beginning of 2008, Kerr left the business and was replaced in March by Bert Pijls. Pijls joined Citi in 1990, and has held several roles in the bank.[10] In November 2007, approximately 350 non specialist roles were moved from the Dudley centre to Derby, resulting in redundancies and relocation packages. The Dudley office was later closed.
On 1 March 2011, Barclays Bank announced that they had agreed to buy Egg's more than one million credit card accounts from Citigroup.[11] Barclay's Barclaycard division took over the Egg credit card business in May 2011, after Citi had spent time trying to sell the business as part of its Citi holdings portfolio.
Citi and Barclaycard shared the same site at Pride Park, Derby, but it was announced on 21 June 2011 that Barclaycard would move operations to their Kirkby and Northampton sites, leaving 659 people redundant. On 25 July 2011, Egg announced the proposed sale of all savings and mortgage accounts to Yorkshire Building Society. This would complete Citigroup's sale of the Egg business.[12][13]
