The troubled Co-op Bank has announced that it is putting itself up for sale while warning it is set to make another annual loss.
In a statement this morning, the bank said it would invite offers to buy all of its shares, saying its ethical approach and 4m customers made it a “strong franchise with significant potential”.
The loss-making bank almost collapsed in 2013 after discovering a black hole of more than £1bn.
It was rescued by US hedge funds and said it had made “considerable progress” on its turnaround since then, with its cost base reduced by more than 20pc since 2014.
However it said today that it would fall to a "significant" loss for the year ending December 2016, although the amount would be lower than the £610m it lost in 2015.
Questions that could be considered:
1. If it is a strong franchise why is it making a loss?
2. What is/are the main source(s) of profits for banks?
3. If it has 'significant potential' why sell?
4. Does the Co-op's ethical stance mean it has no close competitors?
5. What are the risks in having an 'ethical stance' and what IS the bank's 'ethical stance'?
