Co-op Bank hints at potential sale after reports of auction
Co-operative Bank has confirmed that it is “exploring potential strategic opportunities” in its first trading update since reportedly putting itself up for sale in September.
The announcement was included within the bank’s third-quarter results on Wednesday, which doubled down on guidance despite a fall in profits.
Brokers have speculated over a potential sale of Co-op Bank for months after reported interest from rival lenders.
“Following the bank’s strong recovery and growth in the past three years, the bank is exploring potential strategic opportunities, the assessment of which is currently at a preliminary stage,” Co-op Bank said.
“There is no guarantee that such discussions will result in any eventual transaction. In the meantime, the bank remains committed to its strategy to continue to drive significant positive outcomes for all of our stakeholders.”
In the same statement, the bank noted its recent acquisition of Sainsbury’s £479m mortgage portfolio.
Co-op Bank reportedly put itself up for sale in September, with an early October deadline for non-binding bids.
Private-equity backed Shawbrook is understood to be the bank’s only known bidder after specialist lender Aldermore ditched its offer late last month.
Co-op Bank’s leaders reportedly favour a merger with a rival high street lender over a sale.
Britain’s medium-sized high street lenders have struggled with an economic downturn and the collapse of Silicon Valley Bank earlier this year.
Co-op Bank was sold by the Co-operative Group after it lost £1.3bn following a merger with Britannia in 2009 and nearly collapsed in 2013.
Morning Wire has approached Co-op Bank and Shawbrook for comment.