02 May 2024 , 08:15
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The Co-operative Bank confirmed that the transformation of its operations is "materially complete", ahead of its merger deal with Coventry Building Society.
Regarding the merger discussions which could see the building society buy Co-op Bank for up to £780million, the firm indicated they are "well advanced", following substantial due diligence steps. Nick Slape, the boss of the bank, announced he is "very pleased" with the Q1 2024 performance, saying it remains within forecasts.
On Thursday, shareholders were informed that the "multi-year transformation programme (is) materially complete", a strategy that involved significant cost-cutting - including proposals to cut about 400 jobs this year. Already having demonstrated its intention to trim down its workforce of approximately 3,000 by around 12%, impacts will be felt business-wide, from branch staff to upper management.
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."
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A £100million IT simplification scheme was also incorporated in the plan and now, the bank states it made "significant progress" with nearing completion on IT changes.