Cooperative bank prepares for return to common ownership

The Co-operative Bank has revealed falling profits but has called 2024 a “milestone” as it prepares to become joint owners again through a merger with Coventry Building Society.

The company reported pre-tax profits of £24.2m for the first six months of the year, half the £61.8m reported this time last year.

This happened after the impact of higher borrowing costs began to fade for banks, which previously charged higher amounts for loans.

However, the lender was pleased with the completion of the transformation plan, which included staff reductions and a £100m IT simplification project.

The company expects to close a deal worth £780m, after which it will be acquired by rival lender Coventry Building Society in early 2025.

This major move creates a group with millions of customers and assets worth around £89 billion.