Five questions answered on the Co-op Bank’s plans to cut branches

How many stores is the Co-op Bank planning on closing?

Amid an ongoing struggle to bring the Co-op Bank back into profit it has announced it will close some of its stores by the end of next year. We answer five questions on the Co-op’s branch closure plan.

How many stores is the Co-op Bank planning on closing?

The banking group plans to reduce its branch network by 15 per cent by the end of next year, which means closing around 50 branches.

How will the branch closures affect jobs at the bank? 

In regards to this, Euan Sutherland, group chief executive, told BBC Radio 5 live: "We do need to take the overall costs down, unfortunately [that] will hit jobs, but we don't have the details today."

He added: "We have taken a major step forward towards achieving our plan to secure the future of the bank.”

Why is Co-op closing these branches?

The branch closures are part of a £1.5bn recapitalisation plan rescue deal to bring the bank back into profit.

The rescue deal will see shares of around 70 per cent of the bank handed over to creditors, leaving Co-op Group with 30 per cent.

The Co-operative Group will inject £462m into the bank to retain this 30 per cent equity.

However, investors have to vote in this plan in a vote that will take place before the end of the year. Three quarters of investors must support the plan for it to proceed.

The Co-op also plans to list the bank on the London Stock Exchange in 2014.

What else have decision makers at the Co-op Bank said?

Niall Booker, chief executive of the bank, is reported as saying by The Telegraph:

“You can see by what’s happened to other banks,” he said, naming the Royal Bank of Scotland and Lloyds Banking Group, “that’s it going to take time.”

“One thing we must not forget is the core part of our operation is profitable on an ongoing basis; the drag comes from the run-off portfolio,” he continued.

Finally he added that:  “it’s going to take us four to five years to restructure this bank.”

What has bank regulators the Prudential Regulation Authority said about the Co-op Bank’s new recapitalisation plans?

"We welcome the announcement by the firm today setting out the final details of how it will raise the capital required," it said in a statement.

The banking group plans to reduce its branch network by 15 per cent by the end of next year. Photograph: Getty Images.

Heidi Vella is a features writer for Nridigital.com

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Tory Brexiter Daniel Hannan: Leave campaign never promised "radical decline" in immigration

The voters might not agree...

BBC Newsnight on Twitter

It was the Leave campaign's pledge to reduce EU immigration that won it the referendum. But Daniel Hannan struck a rather different tone on last night's Newsnight. "It means free movement of labour," the Conservative MEP said of the post-Brexit model he envisaged. An exasperated Evan Davis replied: “I’m sorry we’ve just been through three months of agony on the issue of immigration. The public have been led to believe that what they have voted for is an end to free movement." 

Hannan protested that EU migrants would lose "legal entitlements to live in other countries, to vote in other countries and to claim welfare and to have the same university tuition". But Davis wasn't backing down. "Why didn't you say this in the campaign? Why didn't you say in the campaign that you were wanting a scheme where we have free movement of labour? Come on, that's completely at odds with what the public think they have just voted for." 

Hannan concluded: "We never said there was going to be some radical decline ... we want a measure of control". Your Mole suspects many voters assumed otherwise. If immigration is barely changed, Hannan and others will soon be burned by the very fires they stoked. 

I'm a mole, innit.