The Co-operative Bank has said it plans to cut around 400 jobs, more than one in 10 of its workforce, as part of plans to slash costs.
Rising costs stripped back the bank’s profit in 2023 as talks of a merger were confirmed last month.
It was said that talks with Coventry Building Society ‘remained ongoing’ after pre-tax profit fell from £132.6m to £71.4m in 2023, City A.M. reported.
Staff costs also rose by 21 per cent due to internal investment and ‘inflationary pay rises’, which saw the bank’s cost-to-income ratio rise.
Despite this, the bank said its credit quality remained ‘robust’ in February, after reporting that impairments were down to just £600,000 from more than £6m last year.
The Co-operative Bank has announced plans to reduce its workforce by around 400 jobs
It comes after the Coventry Building Society submitted a bid for the bank back in December for around £700m
The Co-op Bank confirmed late last year that it had entered exclusive talks with Coventry Building Society about the possibility of a merger.
Coventry Building Society reportedly submitted a bid for the bank in December, valuing the company at £700m.
Currently, the Co-op bank is owned by a collection of private equity investors and hedge funds, but it is said to go back to mutual ownership if the merger with Coventry goes ahead.