Co-Op bank, who are one of the banks responsible for the mis-selling of PPI policies in the UK and who hold a cash provision of nearly £100 million for ppi claims – have announced that it lost £477 million through 2016.
The near £500 million loss is still shy of the £610 million that the bank lost in 2015. However, the 2016 loss, means that the co-op bank has now made losses for five consecutive years, dating back to 2011.
These losses, plus the Co-Op’s inability to adhere to Bank Of England rules have resulted in the Manchester based financial group putting itself on for sale. As of March 10 2017, no one company has come forward or disclosed any bids regarding purchasing the bank. Yet that are rumors of some challenger banks taking interest in purchasing the entire bank, whilst others have been reported to be only interested in nabbing a specific division.
An article on the BBC website talked more about the Co-Op’s banks losses and potential suitors.
It was forced to offer itself for sale after it was unable to reach a strong enough footing to satisfy the Bank of England’s regulatory requirements.
The bank blamed low interest rates and the higher-than-expected cost of its turnaround plan for its failure to meet the Bank’s Prudential Regulation Authority (PRA) rules.
The PRA had welcomed the bank’s decision to put itself up for sale.
But the planned sales raised concerns from the former business secretary, Sir Vince Cable, and two Treasury Committee MPs.
The Co-op Bank has four million customers and is well known for its ethical standpoint, which its board said made it “a strong franchise with significant potential” to prospective buyers.