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.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
