Co-op ‘knows how to run a bank’

By PETER CRIPPS
Published on 29/03/2012 09:59

The boss of the Co-operative Group insisted “we know how to run a bank” today after speculation that its £1.4 billion bid to buy 632 Lloyds branches is in jeopardy.

The supermarkets-to-funerals business was named preferred bidder for the branches but regulators are reportedly concerned by a lack of banking expertise on its board.

Chief executive Peter Marks admitted there was no guarantee the deal would go through but said the group’s ability to run a bank should not be called into question.

He told Sky News: “We have run a successful, ethical, socially responsible bank for over 100 years. During the credit crunch, when a lot of banks were collapsing, we sailed serenely through, stronger than ever. We know how to run a bank.”

Marks’s comments come as the wider group revealed a 5.8 per cent fall in pre-tax profits to £373 million in 2011, with its 2,800-store grocery arm suffering a 2.1 per cent fall in like-for-like sales.