Co-op scraps interim dividend as Bank name put in doubt

The Co-operative Group has scrapped its interim dividend due to its ongoing banking woes.

Outgoing chairman Len Wardle told delegates at its half-year meeting on Saturday: “Our decision not to pay an interim dividend was not one that was taken lightly. But it was viewed by the board as a necessary one, given the challenges facing the group at this time.”

The news comes as business secretary Vince Cable launched a consultation into whether The Co-operative Bank can retain its name following a restructuring plan that will see the society retain just a 30% stake in the business.

“I am open to representations now from people who take different views on this issue,” Cable said.

The Co-operative Bank is also reportedly preparing to spin off its renewable energy lending division. The business could be listed on the stock market with a portfolio of assets worth more than £500m, according to reports.

Christmas coupon

Meanwhile The Co-op has announced that between 18 November and 15 December, every time a Co-op member spends a minimum of £5, they will receive a coupon worth the equivalent of 10% off the value of their shopping.

The society said the vouchers could be saved and used as a cash equivalent in any of its 2,800 stores before 24 December.

“We understand that Christmas is a particularly costly period for our members and their families, many of whom are under increased financial pressure,” said CEO Euan Sutherland.

“Technology now allows us to offer these more immediate rewards which we are confident our members will appreciate in the run-up to festive period.”