Co-operative Bank 'unlikely to meet' Individual Capital Guidance

Co-operative Bank provided an update on its previous guidance on capital on Thursday.

Those were unaudited figures, the board cautioned, which will be updated as part of the bank's 2016 full year results.

“Considerable progress continues to be made in implementing the turnaround plan,” the board explained.

“As part of its current annual planning process, the bank continues to evaluate the impact of various factors on its medium term outlook including, amongst others, the impact of the interest rate environment, the management of its transformation portfolio, the timing of new IRB model approvals, conduct charges and deleveraging.”

As a result, the bank said it was updating its previous guidance and now expected that its CET1 ratio will fall and remain below 10% over the medium term and that it is unlikely to meet its Individual Capital Guidance over the planning period to 2020.

“The bank continues to expect to meet its Pillar 1 capital requirements and to maintain sufficient liquidity to meet its obligations.”