Co-op Bank transformation ‘materially complete’ ahead of merger deal

The Co-operative Bank has said its transformation plan is “materially complete” ahead of its agreed merger with Coventry Building Society.

The banking firm said discussions over the deal, which will see the building society acquire Co-op Bank for up to £780 million, are “well advanced” after completing significant due diligence.

It came as Nick Slape, the boss of the high street bank, said he is “very pleased” with its performance over the first quarter of 2024.

Co-op Bank said its financial performance is in line with expectations and held firm its guidance for the year.

On Thursday, the company also told shareholders its “multi-year transformation programme (is) materially complete”, after significant cost-cutting which included proposals to axe around 400 jobs earlier this year.

In March, it said it planned to reduce its roughly 3,000-strong workforce by around 12%, in a move affecting staff across the business, including at its branches.

The transformation plan has also included a £100 million IT simplification programme.

The bank said it has made “significant progress” with IT changes, which are now close to completion.

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

“We are focused on delivering value to our shareholders through the strength of our business model and the hard work of our colleagues.

“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.

“Colleague wellbeing and customer service remain central throughout this process.”