Co-op Bank ‘facing £200m IT hit’

THE Co-operative’s banking arm could be forced to write-down up to £200m on IT investments if its planned acquisition of 632 Lloyds branches goes ahead.

According to a report in The Times, the The Co-op agreed to adopt Lloyds’ banking IT system, leading to a significant write-off on investment in its own systems.

This includes Infosys’s Finacle platform which it opted for in 2009 but has not yet rolled out.

It is understood the cost could wipe out the division’s 2012 profits. The Co-operative described the story as “highly speculative” and has declined to comment.

Co-op struck a £750m deal to take on the Lloyds branches in July. The move will creating a bank with a network of more than 1,000 branches and 4.8 million customers.

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