You are here: Home - Saving & Banking - News -

Co-op Bank up for sale: what it means for customers

Written by: Paloma Kubiak
The Co-operative Bank has put itself up for sale in a bid to rebuild its capital position.

Co-op Bank, which is 20% owned by the Co-operative Group, said the sale is “the best route forward to deliver the next phase of the bank’s turnaround plan”.

In a statement, it said: “Our ability to continue to build capital for the future has been adversely impacted by the lower for longer interest rate environment and the greater than expected cost of fixing the legacy issues of the past.”

Co-op Bank nearly went bust in 2013 before it was bailed out by a £1.5bn rescue package.

The bank said it had made significant progress since 2013 to rebuild its banking proposition and fix “major legacy issues”.

What does this mean for customers?

The bank has four million customers spread across its current account, savings, mortgage, credit card and loan products.

It said today’s announcement is an intention to sell the bank and that it’s “business as usual” and “will have no direct impact” on its products.

A spokesperson confirmed there are no plans to pull its £110 current account switching incentive.

The bank said customers’ money is safe, with deposits up to £85,000 protected by the Financial Services Compensation Scheme (FSCS).

In its message to customers, Liam Coleman, chief executive of Co-op Bank, said: “The Co-operative Bank has a valuable role to play in providing customers with a different choice in the market, set apart by the values and ethics that remain a key reason why customers choose to bank with us.

“Ensuring that these continue to sit at the heart of the bank is vital and we are delighted to be celebrating the 25th anniversary of our customer-led Ethical Policy during 2017.

“We have worked hard to rebuild our retail banking proposition, differentiated by our values and ethics and strong customer service, which we know is valued by our customers. We have made considerable progress to address major legacy issues we inherited in many areas and made the bank more resilient overall.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
The easy ways to prevent your car failing its MOT

Carrying out basic car maintenance could avoid the main reasons cars fail their annual MOT, government data suggest.