The Co-op Bank provided the following response to the four questions we put to the bank after reviewing its 2017 Values and Ethics Report. The bank has a good record of engaging with the Save Our Bank campaign as a representative of ethically motivated customers, and we appreciate them taking the time to respond.
Response from the Co-operative Bank to the Save Our Bank campaign, 17th September 2018.
Sticking with the bank
When we set up the Save Our Bank campaign in 2013, the rescue deal brokered by The Co-operative Group meant that private investors were taking a majority stake in the bank, removing it from co-operative control. Our fear was that this change in ownership would threaten the bank’s world-leading ethical policy. We thought that would be a big step back.
The Co-operative Bank has released its full results for 2017.
This shows a loss of £140m, compared with £477m the previous year.
(The loss was offset by a gain from recapitalisation and restructuring during the year of £356m)
The CET1 ratio (a measure of how much raw capital the bank has to fall back on if things go bad - a measure regulators are very interested in) went up from 11% to 24.7%.
Prime current account holders (paying in £800/month on average or more) went down from 664,000 to 648,000 - a loss of 16,000.
Address to Customer Union members from Paul Lawler of the Co-operative Bank
Paul Lawler of the Co-operative Bank addresses Customer Union members from Save Our Bank on Vimeo.
Should the Customer Union accept the deal agreed by the Co-op Bank with its investors to provide £700m capital funding?
(from 5pm Sunday 12 November).
We will announce the result at the General Meeting of the Customer Union for Ethical Banking in Manchester on 18 November
The International Co-operative Alliance describes how a co-operative is at least partly owned and controlled by its members. The Co-operative Bank has never had members, but it used to be owned by The Co-operative Group, which does have members. Now the Co-operative Group has almost completely withdrawn from the bank, we want to see progress - towards bank customers having more say and more ownerhsip.
The Co-operative Group has sold its remaining stake in Co-operative Bank. Here is our view on what this means.
With the sale of the Co-operative Group’s 1% stake in the Co-operative Bank, the last remaining link between the bank and its former owner has been broken.
Save Our Bank’s view on the Co-op Bank’s Values and Ethics Report
The Customer Union for Ethical Banking has invited the Co-operative Group to help with the creation of a new, customer owned, democratic stake in the Co-operative Bank.
Responding to a question from Save Our Bank's Shaun Fensom at the Co-operative Group's AGM on 20 May - see video - the Group chair Allan Leighton said that it was not possible for the Group to comment while the 'sale process' is underway, but confirmed that as a shareholder in the bank, the Group is focused on ensuring any buyer adheres strongly to the cooperative values we all believe in.
In February 2017 the Co-operative Bank put itself up for sale via an announcement on its website. A sale is one of a number of possible outcomes - the bank said it may also look at other ways of raising new capital. It has set up an FAQ page to answer any questions customers may have.
