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Co-op Bank to cut branch network by 15%

Co-op Bank to cut branch network by 15%

Category: Banking

Updated: 04/11/2013
First Published: 04/11/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Co-operative Bank has announced plans to reduce its branch network by at least 15% by the end of 2014, with job cuts set to be an inevitable side effect.

The announcement forms part of the bank's rescue plan, details of which were finalised over the weekend, which will see Co-op Group left with a 30% share in the bank and its creditors having the 70% majority.

The reduction in branches is intended to keep costs down with the bank saying that it will "significantly enhance" its mobile and internet banking services as a result of the closures, but group chief executive Euan Sutherland has warned that the move will hit jobs.

However, he's called it a "major step forwards" towards securing the future of the bank and is optimistic about its future, with it set to be listed on the stock exchange in 2014.

Investors are now being asked to vote to back the plan to ensure Co-op Bank doesn't get taken over by the Bank of England, after the £1.5bn hole in the balance sheet was discovered earlier this year.

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