Co-op Bank says it is on track to meet Bank of England targets

 
Lauren Fedor
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The Co-op has been making changes since failing a central bank stress test at the end of 2014
The Co-operative Bank said in a first-quarter trading statement yesterday that its turnaround plan is on track.

The bank is undergoing changes to de-risk its balance sheet and meet revised deleveraging targets as set by regulators after the Bank of England stress tests last year.

The bank completed a £1.5bn residential mortgage securitisation earlier this month as part of the plan.

“There is considerable work ahead to address legacy issues across all areas of the business,” chief executive Niall Booker said.

“Furthermore, the Bank remains exposed to external macroeconomic conditions, including the timing of future interest rate rises and market conditions to support successful asset disposals, but we are pleased with the progress management has made in the areas we control and in what remains the early stage of our recovery,” he added.

The bank said it will continue to cut costs in the coming months by outsourcing certain office roles and scaling back its ATM network.

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