Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
8th November 2011
Co-op to bid for Lloyds Banking branches
Co-operative Financial Services confirmed that it is to bid for the 632 Lloyds Banking group branches for sale, under Project Verde. Whilst one of three showing an interest in the first round only NBNK has submitted a formal bid to date. It is notable in the quotation below that a non-binding bid is mentioned as opposed to a conditional bid which may have been expected given this is the second round of the proceedings.
Peter Marks, Group Chief Executive of The Co-operative Group, said: "We have a clear strategy for driving The Co-operative Group forwards. As part of this we remain interested in the Lloyds Banking Group's branch assets as we believe this would support our moves to grow our relationship banking business in the UK. Our bid for the assets is non-binding and we would only proceed if we could reach an agreement that was in the interests of our members and other stakeholders."
The idea that a co-operative enterprise with a strong ethical investment policy and green credentials may gain the Lloyds Banking branches will probably garner public support. The Co-operative Bank also has some payment and banking infrastructure in place, though whether large enough to deal with the proposed acquisition may be questionable. A concern must be the very low profitability. Whilst the huge profits of some banks in the past were a cause of concern too low profits should be also. Co-op Bank has faced special charges it is true - first from the Britannia merger and then Payment Protection Insurance charge. However if a bank cannot generate profit then it cannot adequately protect itself against the unforeseen or easily expand its lending. The bank made £2.6m profit in the first half of this year and £28.2m in the first half of 2010.