We are disappointed by the ratings downgrade announced by Moody’s. We have a strong funding profile and high levels of liquidity, which are significantly above the regulatory requirements.
We do acknowledge, like the rest of our banking sector peers, the need to strengthen our capital position in light of the broader economic downturn and the pending introduction of enhanced regulatory requirements, and we have a clear plan to drive this forward throughout the coming months.
Our banking business is already characterised by excellent levels of customer service and advocacy, as recently highlighted in reports by YouGov and uSwitch.
Our primary current account base in recent years has enjoyed significant growth. The actions we will now take to strengthen our balance sheet and simplify our business model around a core relationship banking offer, will create a compelling co-operative banking business which is truly distinctive within the banking sector.
Co-operative bank becomes major high street player
by Richard Pallot
One of Britain's smallest banks has became one of the country's biggest after Lloyds sold more than 600 branches and the accounts of up to five million customers to the Co-operative.
The deal means it will triple its footprint on our high streets. The Co-op's chief executive promised a revolution, restoring trust to high street banking. Richard Pallot asks if he can deliver on that.
Which? welcomes increased competition in banking sector
Sign for Lloyds Banking Group. Credit: PA
Richard Lloyd, executive director of Which?, said that while the move was a "welcome first step" in increasing competition, portable account numbers should be introduced to make switching your bank as easy as changing your mobile phone.
Consumer Focus: Co-op should offer a point of difference
Sarah Brooks, director of financial services at Consumer Focus said it was vital that the Co-op used its new status to offer a point of difference and not just "more of the same".
She urged Lloyds and the Co-op to communicate the changes clearly to their customers so they could decide what to do.
Moneyfacts: Extra Co-operative Bank branches is 'great news'
The Co-operative Bank has been in the financial services sector for 140 years and additional branches will be great news to not only its loyal customers, but also to prospective new customers looking to make a move from their existing bank...They also continue to support various charitable causes by the way of issuing charity credit cards.
MoneySupermarket: Co-operative Bank is a 'trusted brand'
As we have seen over recent weeks following the recent banking turmoil, many smaller banks, including the Co-operative Bank, have benefited from customers switching away from the big banks.
Creating a new 'real' challenger to the big banks may be the antidote the sector needs, and may encourage a culture of switching which has been lacking over the past few years, especially as the Co-operative Bank is seen as a more trusted brand than many of its rivals.
– Kevin Mountford, head of banking at comparison website MoneySupermarket
Co-op's branches deal 'could be significant for small firms'
If this deal goes ahead it will see Co-op land a 10% slice of the UK’s high street banking pie. That’s a sizeable figure and will give them real clout as a mainstream lender.
This could be a really significant development for small firms looking to restore traditional relationship banking, where the tick box lending criteria approach will hopefully have no place.
Co-op is already a respected high street name with great ethical standards and credentials most other banks can only dream of.
– Alex Jackman, Senior Policy Advisor at the Forum of Private Business
Lloyds said there would be no changes for the 4.8 million customers affected by the sale of 632 branches to the Co-Op until next year.
The group said all its customers will be contacted regarding the changes and those affected will be given the option to transfer to the Co-Op or remain with Lloyds.
