Co-op Bank considers further disposals
THE Co-op Bank is considering the sale of additional assets that could help shore up its capital position.
It has cancelled next week’s shareholder meeting at which investors were to vote on plans for staff incentives and deferred bonuses because its plans to run-down non-core assets might have to be changed first.
The results of the stress tests on eight banks, including the Co-op Bank, are due to be published on 16 December. The bank has already admitted it has insufficient capital to cope with the most severe economic shock.
The bank said it was considering selling “certain additional portfolios” which were particularly susceptible to stress. The move was also motivated by “positive developments in market pricing”.
It said: “The board has therefore determined to cancel the meeting on Dec. 10 2014 with the result that it is highly unlikely that the processes required to establish a 2014 LTIP (long term incentive plan) will be completed in the time frame required.”
The bank’s remuneration committee is considering “appropriate alternatives” to its long-term incentive plan and how to meet outstanding obligations. The deferred bonus plan for the executive management team will, however, proceed, it added.
Earlier this week the bank completed the sale of the Illius portfolio of repossesed properties to Salmon Real Estate for £157m.
