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BASIS OF PRESENTATION
The Co-operative Bank Holdings p.l.c. is the
immediate parent company of The Co-operative Bank Finance p.l.c.
and the ultimate parent company of The Co-operative Bank p.l.c. In
the following pages the term 'Group' refers to The Co-operative
Bank Holdings p.l.c. and its subsidiaries. The term 'Finance Group'
refers to The Co-operative Bank Finance p.l.c. and its
subsidiaries. The term 'Bank' refers to The Co-operative Bank
p.l.c. and its subsidiaries which are consolidated within the
Finance Group and then ultimately the Group.
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Third Quarter Trading Update 2024
26 November 2024
Key
highlights
· Trading performance
robust; significant surplus to all
capital and liquidity requirements
· Strong wholesale market
activity; benchmark £500m three-year covered
bond issued; £200m MREL-senior capital refinanced
· The Board of The Co-operative
Bank Holdings p.l.c. has approved an interim
dividend; 0.996774 pence per class A
ordinary share for the year ended 31 December 2024 to be paid on 28
November 2024, returning £90m to shareholders
Nick Slape, Chief Executive Officer,
said:
"I am very pleased with the Bank's momentum;
net mortgage balances have increased by 2% and SME net lending
balances were up by 16% since FY 2023, with total customer deposits
up 1% in the same period. Current account net switch-outs are c70%
lower than at this time last year and we are on track to end the
year with a net positive switch position for the first time in
several years following our proposition success.
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. The
Bank is in a strong position, maintaining a resilient, low risk
balance sheet and sustained credit quality."
Investor enquiries:
investorrelations@co-operativebank.co.uk
Angela Catlin, Head of Investor Relations, Corporate Affairs and
Brand: +44 (0) 7548 965 042
Media enquiries:
Email:
pressoffice@co-operativebank.co.uk
Telephone: +44 (0) 151 271
1985
The person responsible for arranging
the release of this announcement on behalf of The Co-operative Bank
Holdings p.l.c. and The Co-operative Bank p.l.c. is Catherine
Green, Company Secretary.
About The Co-operative Bank
The Co-operative Bank p.l.c. provides a range
of banking products and services to about 2.4m retail customers and
c.95k small and medium sized enterprises (SME). The Bank is
committed to values and ethics in line with the principles of the
co-operative movement. The Co-operative Bank p.l.c. is the only UK
bank with a customer-led Ethical Policy, which gives customers a
say in how their money is used. Launched in 1992, the policy has
been updated on six occasions, with new commitments added in June
2022 to cover what we do for our planet, people and the
community.
The Co-operative Bank p.l.c. is authorised by
the Prudential Regulation Authority (PRA) and regulated by the
Financial Conduct Authority (FCA) and the Prudential Regulation
Authority. The Co-operative Bank p.l.c. eligible customers are
protected by the Financial Services Compensation Scheme (FSCS) in
the UK, in accordance with its terms.
Note: This announcement
contains inside information.
The Co-operative Bank p.l.c. LEI:
213800TLZ6PCLYPSR448
The Co-operative Bank Finance p.l.c. LEI:
213800KNE8ER4N9BLF11
The Co-operative Bank Holdings p.l.c. LEI:
213800MY2BSP459O8A22
FORWARD-LOOKING
STATEMENTS
This document contains certain forward-looking
statements with respect to the business, strategy and plans of the
Group and its current targets, goals and expectations relating to
its future financial condition and performance, developments and/or
prospects. Forward-looking statements sometimes can be identified
by the use of words such as 'may', 'will', 'seek', 'continue',
'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate',
'intend', 'plan', 'goal', 'believe', 'achieve', 'predict', 'should'
or in each case, by their negative or other variations or
comparable terminology, or by discussion of strategy, plans,
objectives, goals, future events or intentions.
Examples of such forward-looking statements
include, without limitation, statements regarding the future
financial position of the Group and its commitment to its plan and
other statements that are not historical facts, including
statements about the Group or its Directors' and/or management's
beliefs and expectations. Any such forward-looking statements are
not a reliable indicator of future performance, as they may involve
significant stated or implied assumptions and subjective
judgements, which may or may not prove to be correct. There can be
no assurance that any of the matters set out in forward-looking
statements are attainable, will actually occur, will be realised,
or are complete or accurate. Past performance is not necessarily
indicative of future results. Differences between past performance
and actual results may be material and adverse.
For these reasons, recipients should not place
reliance on, and are cautioned about relying on, forward-looking
statements as actual achievements, financial condition, results or
performance measures could differ materially from those contained
in the forward-looking statement. By their nature, forward-looking
statements involve known and unknown risks, uncertainties and
contingencies because they are based on current plans, estimates,
targets, projections, views and assumptions and are subject to
inherent risks, uncertainties and other factors both external and
internal relating to the Group's plan, strategy or operations, many
of which are beyond the control of the Group, which may result in
it not being able to achieve the current targets, predictions,
expectations and other anticipated outcomes expressed or implied by
these forward-looking statements. In addition, certain of these
disclosures are dependent on choices relying on key model
characteristics and assumptions and are subject to various
limitations, including assumptions and estimates made by
management. No representations or warranties, expressed or implied,
are given by or on behalf of the Group as to the achievement or
reasonableness of any projections, estimates, forecasts, targets,
prospects or returns contained herein. Accordingly, undue reliance
should not be placed on forward-looking statements.
Any forward-looking statements made in this
document speak only as of the date of this document and it should
not be assumed that these statements have been or will be revised
or updated in the light of new information or future events and
circumstances arising after today. The Group expressly disclaims
any obligation or undertaking to provide or release publicly any
updates or revisions to any forward-looking statements contained in
this document as a result of new information or to reflect any
change in the expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based, except as required under applicable law or
regulation.
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