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Coventry BS and Co-op Bank in exclusive merger talks

  • 21/12/2023
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Coventry BS and Co-op Bank in exclusive merger talks
Coventry Building Society and the Co-operative Bank have entered discussions over a possible merger deal.

In an update today, Coventry BS and Co-op Bank said there was no certainty that a transaction would take place, nor would any terms of a transaction be concluded. 

The Co-op Bank said the “period of exclusivity will enable the society and the bank to better evaluate the merits of a combination”. 

In its Q3 results, the Co-op Bank revealed it was exploring “strategic opportunities” after it reported a fall in its profit before tax from £102.8m in 2022 to £81.1m this year. It also agreed to purchase a £479m mortgage portfolio from Sainsbury’s Bank. 

The Co-op Bank has reportedly been seeking a buyer since this April, with Aldermore, Shawbrook, Paragon Banking Group and OSB among some of the lenders expressing interest. 

In its most recent results, Coventry Building Society posted a profit before tax of £269m, which was higher than a figure of £158m a year earlier. 

Neither lender provided further comment when contacted by Mortgage Solutions.

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