Capita preferred for Co-op Bank mortgage contract

11 November 2014

     Capita preferred bidder for The Co-operative Bank mortgage operations      
                             outsourcing contract                              

The Co-operative Bank has selected Capita plc (`Capita') as preferred bidder to
transform its mortgage servicing operation in the UK. Subject to final terms,
the approval of the Bank's board, and regulatory approval, the deal would be
worth up to £325m over 10 years and is anticipated to start in the first
quarter of 2015.

Under the terms of the deal, one of the largest in a decade if agreed,
comprising more than 250,000 mortgage customers and £23bn of lending, Capita
would take over and transform The Co-operative Bank's mortgage servicing
operations in Leek in Staffordshire and Plymouth. It would install new systems
- designed to drive efficiency while simplifying business processes in a
regulated environment - to improve the experience for The Co-operative Bank's
customers and support business growth.

As part of the deal Capita would acquire the people and assets of Western
Mortgage Services Limited, The Co-operative Bank's mortgage administration
business.

Andy Parker, Capita Chief Executive, said: "Retail banking is facing
unprecedented business and regulatory challenges and Capita is therefore
focusing strongly on developing capacity to support this market. We have
recently acquired Crown Mortgage Management (now Capita Mortgage Services) and
can draw upon our existing and wide ranging commercial debt-servicing
capabilities and our heritage of large scale customer service transformation
across a range of industries facing similar challenges. Capita would work with
The Co-operative Bank to deliver an enhanced service for customers, by, for
example, using analytics and insight to give them the experience they want and
expect from their mortgage provider.

"Capita's ambition is to draw on its business process and customer service
transformation expertise to become the leading end-to-end mortgage processing
partner delivering real value to financial services clients."

Niall Booker, Chief Executive at The Co-operative Bank, said: "Our aim is to
become a more efficient bank that is better placed to serve our individual and
SME customers, with values and ethics at the heart of everything we do.
Developing our core retail mortgage business is a key part of this strategy.

"It is vital we improve our processes, consolidate and utilise up to date
mortgage systems and, as a smaller bank, ensure we can respond nimbly in a
competitive market, mindful of the impact of increased regulation to our cost
base.

"These proposals to partner with Capita would support our plans for growth in
retail mortgages and would enable us to continue to deliver high standards of
service to our customers and brokers."

The Co-operative Bank would transfer around 660 people, technology systems and
capabilities to Capita, predominantly in Leek and Plymouth.

Capita will be supported by Unisys and Vertex Financial Services, providing
servicing and mortgage origination platforms respectively.

The deal and acquisition, which The Co-operative Bank is briefing its employees
on today, is subject to a final contract being signed, approval by the Bank's
board and approval by the Financial Conduct Authority.

For further information:
Capita plc
Tel: [phone]
Andy Parker, Chief Executive Officer
Shona Nichols, Corporate Communications Director

Media enquiries only:
Capita press office
Caroline Mooney
Tel: [phone] or 020 7654 2399 (out of hours)
Email: [e-mail]
Twitter: @CapitaPress

Note to editors

Capita plc is the UK's leading provider of BPO and integrated professional
support solutions. With 64,000 people at over 400 sites, including 73 business
centres across the UK, Europe, India and South Africa, the Group uses its
expertise, infrastructure and scale benefits to transform its clients'
services, driving down costs and adding value. Capita is quoted on the London
Stock Exchange (CPI.L), and is a constituent of the FTSE 100 with 2013 revenue
of £3.9 billion. Further information on Capita plc can be found at: 
www.capita.co.uk      

About The Co-operative Bank

The Co-operative Bank plc provides a full range of banking products and
services to almost 5 million retail and SME (Small and Medium Sized
Enterprises) customers. The Bank is committed to values and ethics in line with
the principles of the co-operative movement.