The Co-operative Bank has warned its ongoing troubles and the negative publicity generated could have damaged its brand.
In an update to the City released today, the Bank said: “Recent events may have caused some brand and reputational damage, but it is too early to form a definitive view as to the extent of such damage.”
It also admitted it had seen an increase in the switching out of current accounts, due to “recent events, together with the competitive landscape in which the Bank operates, the introduction of seven-day account switching and the associated increased competitor marketing activity at a time when the Bank has been constrained in its ability to undertake its own marketing activity”.
The Co-op Bank also warned the investigations announced by the Treasury, Financial Conduct Authority and the Prudential Regulation Authority last week were “likely to subject the Bank to greater scrutiny from regulators, will take management time and result in the Bank incurring costs not currently included in its business plan which cannot be quantified at this time”.
However, it insisted its retail deposit based remained “broadly stable” and its liquidity position “stable”.
“Overall, the Bank’s performance has been consistent with or, in the case of costs, slightly better than, management’s expectations,” it added.