The new CEO of The Co-operative Bank has warned there are “no quick fixes” to the bank’s recent problems, but insists it can deliver “sustainable improvement”.

Niall Booker, who will also become deputy CEO for The Co-operative Group, joins on 10 June. He was most recently group MD and CEO of HSBC North America and replaces Barry Tootell who left the society earlier this month after the bank was downgraded to ‘junk’ status by Moody’s.

In April, the bank also pulled out of a deal to acquire 632 Lloyds Bank branches.

“Along with the rest of the Co-op team I will be focused on the actions to strengthen our balance sheet and satisfactorily resolve our underlying issues, while at the same time continuing to serve our existing customers and build on The Co-op Bank’s exceptional brand strength,” he said.

“This will ensure that we are well placed to deliver a sustainable improvement in our banking business.”

“There are no quick fixes here, but with the support of The Co-op Group, our staff and our loyal customer base, I am confident we will be able to stabilise and develop the franchise.”

Co-op Group CEO Euan Sutherland added: “The board and I are confident that Niall will add tremendous value, helping us work through the complex issues that we currently face as we work to re-position our bank.”

“The Co-op Bank has a strong future. We will build on our strengths as a member-owned bank, with a loyal customer base and an ethical heritage. While there is much work to be done, we are confident that we can continue to provide a distinctive, consumer-led alternative on the high street, offering real choice for customers,” he added.