Co-op Bank cuts costs in drive to become more competitive

 
Tim Wallace
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THE CO-OPERATIVE Bank aims to cut its costs in a new drive to make the business more sustainable in the long term, City A.M. understands.

The troubled lender is set to announce plans to trim its cost to revenue ratio from 70 per cent to around 50 per cent, taking it closer to the usual industry cost base.

Some savings will come from closing Britannia Building Society branches near existing Co-op sites.

It will cut around 1,000 staff from the payroll when it sells its insurance arm, and is losing more employees as it stops lending to large firms.

However it still intends to spend money on keeping its popular UK call centres on-shore. More details will be announced by new chief executive Niall Booker in August, with full plans in place when the bank lists on the stock market in October.