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Co-Operative Bank (11YR)

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Monday 16 September, 2019

Co-Operative Bank

Update on PPI Enquiry Volumes

RNS Number : 5190M
Co-Operative Bank PLC (The)
16 September 2019
 

The Co-operative Bank p.l.c.

16 September 2019

 

UPDATE ON PAYMENT PROTECTION INSURANCE (PPI) ENQUIRY VOLUMES

Further to the update issued on 5 September, The Co-operative Bank ("the Bank") today provides further detail of the impact of increased enquiry and complaint volumes relating to PPI received ahead of the complaint deadline that came into effect on 29 August 2019.

 

As seen by other market participants, the Bank received substantially greater volumes of complaints and enquiries than expected in the final month prior to the complaint deadline, the majority of which were received in the final week.

 

Whilst the quality of the complaints and enquiries remains uncertain, the Bank's initial estimate is that an additional charge of £55 million to £75 million is required in respect of paying PPI redress and associated operational costs. It will take several months to process the volumes received in August, during which time further information regarding the quality of the complaints will be determined. The Bank expects to reflect a more accurate figure in its Q3 trading update but it is likely that the majority of processing will not be completed until H1 2020.

 

As a result of this adjustment the Bank now expects its CET1 ratio to conclude 2019 between 19.5% and 20%, which is lower than the c.20.5% included in the 2019 interim results, but remains higher than the original guidance for 2019 of c.19%.

 

As at 30 June 2019, the Bank had an outstanding provision relating to PPI of £38.7 million, including provision for Official Receiver complaints.

 

The estimated range is preliminary and unaudited.

 

Investor enquiries:

 

Jonathan Bailey, Head of Financial Planning & Analysis: +44 (0) 161 201 4572

 

Media enquiries:

 

Lesley McPherson, Director of Communications: +44 (0) 7725 903 270

Laura Hastings, Lansons: +44 (0) 7768 790752

 

About The Co-operative Bank

 

The Co-operative Bank p.l.c. provides a full range of banking products and services to about 3.5 million retail and c.85k small and medium sized enterprises ("SME"). The Bank is committed to values and ethics in line with the principles of the co-operative movement. The Co-operative Bank is the only high street bank with a customer-led ethical policy, which gives customers a say in how their money is used. Launched in 1992, the Policy has been updated on five occasions, with new commitments added in January 2015 to cover how the Bank operates its business, products and services, workplace and culture, relationships with suppliers and other stakeholders and campaigning.

 

The Co-operative Bank p.l.c. is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The Co-operative Bank p.l.c. eligible customers are protected by the Financial Services Compensation Scheme in the UK, in accordance with its terms.

 

Forward-looking statements 

 

This announcement, including information included or incorporated by reference in this announcement, may contain certain "forward looking statements" regarding the financial or capital position, business strategy or plans for future operations of the Bank.  All statements other than statements of historical fact included in any document may be forward looking statements.  Forward looking statements also often use words such as "believe", "expect", "estimate", "intend", "anticipate" and words of a similar meaning. By their nature, forward looking statements involve risk and uncertainty that could cause actual results to differ materially from those suggested by them. Much of the risk and uncertainty relates to factors that are beyond the companies' abilities to control or estimate precisely, such as future market conditions and the behaviours of other market participants, and therefore undue reliance should not be placed on such statements, which speak only as at the date of this announcement. Neither the Bank nor any member of the group assume any obligation to, and do not intend to, revise or update these forward looking statements, except as required pursuant to applicable law.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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