Coventry Building Society has completed its acquisition of The Co-operative Bank, creating a combined organisation with assets of around £89billion and approximately four-and-a-half million members and customers across the UK.
The £780million takeover, which received regulatory approval from the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) in November 2023, was finalised on January 1, 2025.
This merger brings together two established financial institutions with nearly 300 years of combined experience.
The integration combines Coventry Building Society’s existing mortgage and savings business with Co-op Bank’s 2.5 million retail and business customers and 50 branches nationwide.
The Co-operative Bank has become a subsidiary of Coventry Building Society, marking a return to mutual ownership for the 152-year-old bank.
Group chief executive Steve Hughes expressed enthusiasm about the merger in a message to customers and members of both organisations.
“We’re excited about what this means for our future. Bringing together our two values-driven organisations will result in a mutually owned business that’s deeply passionate about its members, customers and communities,” Hughes said.
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The merger represents a significant shift for Co-op Bank, transitioning from shareholder ownership to a mutual structure where it will be owned by individual members. The bank is known for its ethical policy, including its commitment to limiting climate change.
Customers from both high street financial institutions have been assured there will be no immediate changes to their banking arrangements.
“We’re still going to operate as The Co-operative Bank and Coventry Building Society for the time being. This means there will be no change to the way you use our services right now,” Hughes confirmed.
“If you have accounts with both Coventry Building Society and The Co-operative Bank, you’ll continue to benefit from the maximum protection offered by the Financial Services Compensation Scheme through each organisation.
What does the acquisition mean for customers?
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The merger is expected to provide enhanced benefits through increased customer numbers and expanded mortgage and savings balances.
Customers will also gain access to a broader range of financial products, including current accounts.
This integration will give Coventry Building Society a wider geographical presence through an expanded bank branch network.
The combined group’s leadership structure has been confirmed, with David Thorburn appointed as Chairman and Steve Hughes as Chief Executive Officer. Lee Raybould will serve as Chief Financial Officer of the merged organisation.
Nick Slape will retire from his position as Chief Executive Officer of The Co-operative Bank, with a handover period planned for the coming weeks.
Steve Hughes will serve as interim chief executive of the bank alongside his Group role until a permanent appointment is announced.
Bob Dench has stepped down from his role as chairman of The Co-operative Bank, effective from 1 January 2025.
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Nationwide’s £2.9bn takeover of Virgin Money is also taking place
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Jo Kenrick, currently deputy chair of Coventry Building Society’s Board, has taken over as chair of The Co-operative Bank Board from January 1, 2025.
Last year, Nationwide Building Society acquired Virgin Money in a £2.9bn takeover, creating Britain’s second-largest savings and loans group.
The Nationwide-Virgin Money deal stands as the UK’s biggest banking merger since the financial crisis.
Nationwide has reported strong early results from the acquisition, gaining £2.3bn since the deal’s completion.
The building society has also noted that Virgin Money’s value now exceeds the original £2.8bn takeover price.
