The Co-operative Bank brand faces an uncertain future amid the Coventry takeover

The deal will create a lender with nearly five million customers and a balance sheet of £89 billion, returning the bank to its mutual roots.

Coventry will retain the Co-operative Bank name during an integration period expected to last several years, but has not ruled out dropping the brand in the long term. The move would distance the group from previous scandals, including a £1.5bn accounting error in 2013 which led to its split from the Co-operative Group.

The Co-operative Bank’s right to use the Co-op name, granted despite the majority ownership of the hedge funds, could be withdrawn at any time by the regulatory authorities, the Guardian reports.

Coventry, the UK’s second largest building society, aims to increase its share of the mortgage market and gain a foothold in current accounts and business banking through the deal. The Co-operative Bank, with 2.5m retail and 94,000 retail customers, will become a Coventry branch.

The deal, which is expected to close in early 2025, follows a trend of consolidation in the banking sector, including Nationwide’s takeover of Virgin Money.