26 Nov 2024 | 10:47
Co-op Bank to return £90m to shareholders ahead of merger
(Sharecast News) - The Co-operative Bank said on Tuesday that it will return £90m to shareholders as it hailed a "robust" third-quarter trading performance.
The bank - which is set to merge with Coventry Building Society next year - said net mortgage balances have increased by 2% and small and medium sized businesses net lending balances rose 16% since FY 2023, with total customer deposits up 1% in the same period.
It said current account net switch-outs are around 70% lower than at this time last year and it's on track to end the year with a net positive switch position for the first time in several years.
Chief executive Nick Slape said: "I am also delighted with our strong wholesale market activity, with a new £500m three-year covered bond issuance and the successful early refinance of £200m MREL-senior capital, both attracting very strong demand from investors. These transactions are both underpinned by our return to an investment grade credit rating from Moody's of Baa3, and highlight the continued confidence in the long term strategy of the bank.
"We have focussed on delivering shareholder value; our shareholders have patiently supported the bank in its turnaround and, following the continued profitability and successful normalisation of capital requirements, I am delighted that the board was able to declare an interim dividend which returns value ahead of the expected completion of the sale of the Bank to Coventry Building Society in Q1 2025."
He said the bank is in a "strong position, maintaining a resilient, low risk balance sheet and sustained credit quality".