Co-op axes interim dividend

THE Co-op has abandoned its usual pre-Christmas dividend for seven million members due to the near-collapse of its banking arm.

The group is putting £462m into a £1.5bn bailout for the bank and said at a half-yearly meeting in Manchester yesterday that dividends of £8m could not be justified.

Instead members will be offered vouchers for 10% off their Christmas shopping in Co-op food stores.

Speaking yesterday chairman Len Wardle said: “Our decision not to pay an interim dividend was not one that was taken lightly. But it was viewed by the board as a necessary one, given the challenges facing the group at this time.”

According to The Telegraph, the Co-op Bank is preparing to spin off its renewable energy lending operations. It said this would create a new business that could lead to the stock market listing of a portfolio of assets worth more than £500m.

The separation of the business is part of the troubled lender’s plan to dispose of about £15bn of assets considered “non-core” to its future business, said the report.