Liverpool Victoria, which has more than 2.5 million members and customers, will look at an outright sale, as well as strategic partnerships and joint ventures along with measures to enhance the performance of the division.

Fenchurch Advisory Partners has been appointed to assist in the strategic review. The Financial Times indicated that the banking business could be worth between £75 million and £100 million.

Group chief executive Mike Rogers said the aim of the review was to ensure the banking services arm met the needs of customers and members.

He added: "We remain fully committed to providing a banking capability to our customers and partners. Nevertheless, given the recent financial performance of the bank, it clearly makes sense for us to explore external options that would enable us to focus on distribution."

Bournemouth-based Liverpool Victoria also offers savings, investments, life insurance, home and motor insurance and asset management.

Friendly societies are mutual organisations providing a wide range of savings, assurance, insurance and healthcare products, often tax-free.

Copyright (c) Press Association Ltd 2006, All Rights Reserved.