Huge Coventry Building Society deal moves closer

Coventry Building Society
Coventry Building Society -Credit:Reach Plc

Coventry Building Society's £780 million merger with the Co-op Bank has taken a step closer. The Co-operative Bank has said its transformation plan is “materially complete” ahead of its agreed merger, which would offer around three million Co-op bank customers a chance to become Society members.

Discussions over the deal with the building society, which is based at Coventry House in Binley, are said to be 'well-advanced' as significant due diligence has been completed. The news comes as Nick Slape, the boss of the Co-op Bank, said he is “very pleased” with its performance over the first quarter of 2024.

The Co-op Bank said its financial performance is in line with expectations and held firm its guidance for the year. Today (May 2), 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.

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In March, it said it planned to reduce its roughly 3,000-strong workforce by around 12 per cent, in a move affecting staff across the business, including at its branches. The transformation plan also includes a £100 million IT simplification programme.

The bank said it has made “significant progress” with IT changes, which are now close to completion. "Our low-risk balance sheet remains resilient, with all key financial metrics and credit quality in line with expectations," said chief executive Mr Slape.

“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 well-being and customer service remain central throughout this process."

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