Tesco has opened its retail bank’s new headquarters in Edinburgh, which was yesterday hailed as a vote of confidence for the embattled Scottish financial sector.

Tesco Personal Finance was launched 12 years ago as a joint venture with Royal Bank of Scotland. The grocer bought Royal Bank of Scotland out last year, in a deal worth £950m.

Tesco chief executive Sir Terry Leahy said: “When the business became fully owned by us there was never any doubt that it would remain headquartered in Edinburgh. I think that is testimony to the tremendous reputation that Edinburgh has as a centre of financial services and financial expertise.”

Tesco has almost 6 million customers and 7.5 per cent of the credit card market. It plans to offer mortgages in the future.