Co-Operative Bank has been officially bought by Coventry Building Society for £780million.
The high street lender issued the update of the sale this morning, with the move giving Coventry Building Society an extra 2.6million retail customers on top of its own two million. Overall, it now has over 4.5million members. Alongside this, the lender now has assets worth £89billion making it a much bigger player in the mortgage and savings market.
As a result of the move, Co-op Bank has become a subsidiary of Coventry Building Society and has been brought back under “mutual ownership.” This is where a company is owned by its customers.
Coventry Building Society chief executive, Steve Hughes, said: “We’re excited about what it means for our future. Bringing together our two values-driven organisations will result in a mutually owned business that’s deeply passionate about its members, customers, and communities. We’ll use our combined experience of almost 300 years to do more of the things that matter to you.”
Coventry Building Society has confirmed that Co-Op Bank will continue to operate as it does now. This means customers will see no change to the way they do their banking right now. There will also be no change to the services offered to customers.
Previously, Coventry said it would look to integrate Co-op Bank gradually over several years, with the bank’s customers eventually becoming members of the building society. Hughes added: “If you have accounts with Coventry Building Society and The Co-operative Bank, you’ll continue to benefit from the maximum protection offered by the Financial Services Compensation Scheme through each organisation.”
The combined group will be led by David Thorburn, who will serve as chair, Steve Hughes, who will serve as chief executive officer, and Lee Raybould, who will serve as chief financial officer. Nick Slape will retire as chief executive officer of The Co-op Bank, and a handover period will occur in the coming weeks to ensure a smooth transition.
Until a permanent appointment is announced, Steve Hughes will be interim chief executive of the bank alongside his group role. In addition, it was also announced that Bob Dench has retired from his role as chair of the Co-op Bank effective from the start of this year. As a result, Jo Kenrick, who previously served as deputy chair of Coventry Building Society’s board, has taken over the role of chair of the Co-op bank.
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