Co-operative Bank prepares to return to mutual ownership

The Co-operative Bank has revealed shrinking profits but hailed 2024 as a 'landmark' year as it prepares to return to mutual ownership through its merger with Coventry Building Society.

It reported a pre-tax profit of £24.2million for the first six months of the year, half the £61.8million reported this time last year.

It came as the impact of higher borrowing costs begins to wear off for banks, which had charged more for loans. 

But the lender hailed the completion of its transformation plan which included staff cuts and a £100million IT simplification project.

It is expecting to complete a £780million deal to be bought by rival lender Coventry Building Society in early 2025.

The major operation will create a group with millions of customers and about £89billion worth of assets.