As part of its trading results for Q1 2024, The Co-operative Bank has recorded a “financial performance in line with expectations.”
The bank stated that its “multi-year transformation programme [was] materially complete.”
It reported a minor loss of clients, with 7% of total customers leaving to migrate elsewhere.
The bank also achieved an investment grade credit rating, with its long-term deposit rating being upgraded to Baa3 (Moody’s) in March.
Nick Slape, chief executive officer at the bank, said: “I am very pleased with the Bank’s performance in the first quarter of the year.
“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.”
He added: “I am also delighted to share that we have now achieved an investment grade credit rating, following an upgrade from Moody’s to Baa3.
“This recognition highlights the strength of our financial position and the confidence in our long-term strategy.
“The improved credit rating unlocks opportunities to diversify our customer base by growing our corporate banking book, as well as enhanced funding capabilities, with preparation underway for our Covered Bond programme.
“Furthermore, the Bank has now been placed on ‘watch positive’ with Fitch and a ‘review for upgrade’ with Moody’s.
“Significant progress has been made in our IT Simplification programme, which is now nearing completion, with only 6% of savings customers and 14% of mortgage customers left to migrate.
“This creates operational efficiencies, reduces cyber risk and streamlines processes to better serve our customers and colleagues.”
He continued: “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.
“On 18 April, the Bank and Coventry Building Society announced that non-binding heads of terms had been agreed in relation to the potential acquisition of the Bank, and are now working together on the next stages.
“In the meantime, we remain focused on delivering our strategic plan and great service for all our customers.”
