Co-op Bank transformation plan 'materially complete' ahead of agreed merger

2nd May 2024 07:15

(Sharecast News) - The Co-operative Bank said on Thursday that its transformation plan was "materially complete" ahead of its agreed merger with Coventry Building Society.

The banking said talks regarding the deal, which will see Coventry Building Society acquire Co-op Bank in a deal worth as much as £780.0m, were "well advanced" after going through the motions with due diligence.

In terms of recent trading, Co-op Bank stated its financial performance was in line with expectations, leading the firm to maintain full-year guidance.

Co-op Bank also revealed its "multi-year transformation programme" was materially complete, following significant cost-cutting efforts, including proposals to cut roughly 400 jobs.

Chief executive Nick Slape said: "Our low-risk balance sheet remains resilient, with all key financial metrics and credit quality in line with expectations.

"We have recently announced a series of organisational changes across the bank, which are expected to result in a net reduction of approximately 400 roles, and, whilst the decision was not taken lightly, it is essential if we are to become a more agile and efficient organisation."

Reporting by Iain Gilbert at Sharecast.com