Co-op Group Sells Remaining Stake in Troubled Co-op Bank

It was confirmed by the Co-operative Group that it had sold its remaining 1 percent stake in the distressed Co-op Bank for £5m ($6.8m).

The Co-op Bank has 1.4 million current account holders. In 2013, it was rescued from failure by a group of US hedge fund investors after a £1.5bn hole was seen on its balance sheet.

As part of the deal, the Co-op Group decreased its stake in the banking group to 20 percent and wrote off its value earlier in 2017.

Underlying pre-tax profits of £14m for the period six months to 1 July, down 48 percent from the same period in 2016.

It blamed the decrease on continued investment into the member reward scheme and lower earnings in the insurance division.

On the other hand, with food sales increasing by 3.5 percent on a like-for-like basis, group revenues continued to be unchanged at £4.6bn

Co-op revealed that it added over half a million new members in the first semester of 2017, taking active membership to 4.5 million people across the United Kingdom.

“Championing a better way of doing business for our members and their communities is what the Co-op is all about and I’m delighted that we are really starting to deliver on that purpose,” stated the chief executive of Co-op, Steve Murrells.

“We’ve been able to give £35 million back to our members and their communities over the first half of this year, a conscious decision to share our success with our members.”