Coventry Building Society agree to buy Co-Operative Bank

It will make CBS the UK's seventh largest lender

Author: Ben CartwrightPublished 18th Apr 2024

Coventry Building Society has agreed to buy the Co-Operative Bank, making them the UK's seventh largest lender.

The deal signals a return to mutual ownership for The Co-operative Bank and its 3 million customers.

Owners have reached an agreement on the key commercial terms with the owners of The Co-operative Bank to buy it - subject to agreeing the contract and gaining approval from the financial services regulators.

If it goes ahead, the acquisition would make Coventry Building Society the UK’s 7th largest lender with assets of around £89bn.

It would see the 152-year-old Bank brought back under mutual ownership with a pathway for around 3 million Co-op bank customers to become members of the Society.

The Society has conducted extensive due diligence over several months and has included listening to its members through surveys and focus groups in carrying out its investigation. Coventry’s Board will explain why it believes a deal is in the best interests of members and answer member questions at the Society’s AGM in Coventry on 25 April, which eligible member are invited to attend in person or online.

In a letter sent to more than 2 million Coventry Building Society members, Steve Hughes, Chief Executive of the Society, said: “This is an exciting moment for the Society. We have a very successful history, and we believe this could be the basis of a very successful future – with membership, great value and great service at its heart.”

Steve added: “We’ve spent a lot of time evaluating this opportunity and believe it’s the right thing to do. The Co-operative Bank is a financially stable, profitable organisation with a shared heritage and products and services that complement our own.

“We maybe three times bigger, but its customers, colleagues, branches, mortgages and savings balances, and the additional products and services it provides, will make us stronger and able to keep offering the value and service that matter to you. We’re confident that we have the people, capability, and the financial strength to achieve this.”

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