Co-op considers selling its stake in Unity Trust Bank

THE Co-operative Bank is considering a sale of its 26.7% stake in the trade union-owned Unity Trust Bank.

Birmingham-based Unity Trust said it was in talks with the Co-op following a review of its ownership structure and the new business plan announced by The Co-operative Bank.

As part of a £1.5bn rescue plan, the Co-op said it wants to simplify and reshape its business around retail and small business customers.

The Co-op has held a stake in Unity since it was founded in 1985. The bank specialises in lending to social enterprises and charities, and is 73% owned by a collection of 30 trade unions. It has retail deposits of around £616m and made a pre-tax profit of £400,000 in the year to December 2012.

Chair Graham Bennett said: “We are starting to have detailed discussions with our respective shareholders as part of our wider work to reposition the bank as we approach our 30th anniversary.

“The Co-operative Bank has been a fantastic supporter of Unity Trust since it was first founded, however, the time is now right to review our structure as we begin the next chapter of Unity’s development underpinned by our distinct approach to banking.”

Co-op Bank chief executive Niall Booker said: “The Co-operative Bank has been a proud supporter of Unity Trust over many years and we will work closely with them through this process, which fits with our own business plan to simplify the bank.”