New faces continue shake-up at Co-op banking
Veteran banker Richard Pym will lead the bank’s financial restructuring effort following a dramatic credit ratings cut last month.
The UK’s largest customer-owned business said Mr Pym, the former chief executive of building society Alliance & Leicester, would join the Co-op Bank immediately, succeeding Paul Flowers, who has been chairman of The Co-op Group and The Co-op Bank for three years, and is stepping down from both roles and leaving both boards.
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Hide AdMr Pym will retain his current position as chairman of UK Asset Resolution, which holds almost £70bn of loans made by failed lenders Bradford & Bingley and Northern Rock.
The group has also appointed Richard Pennycook, former finance director of Bradford-based Morrison Supermarkets as group finance director.
The Co-op Bank was recently forced to reassure customers it does not need a Government bailout after being downgraded to junk by ratings agency Moody’s amid fears over its capital reserves.
Last month it stopped lending to new corporate customers as it seeks to repair a major hole in its finances.
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Hide AdThe Co-op has been under intense scrutiny after pulling out of a deal to buy more than 600 branches from Lloyds Banking Group.
Mr Pennycook and Mr Pym are the latest big-name signings by the group. Last month it recruited senior HSBC banker Niall Booker as chief executive of the banking arm and deputy chief executive of the wider Co-op Group.
New chief executive Euan Sutherland, the former chief operating officer of B&Q owner Kingfisher, took on his role last month
Len Wardle, chairman of The Co-op Group, said: “The board is delighted to welcome both Richard Pennycook and Richard Pym to The Co-operative Group.
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Hide Ad“They bring significant and valuable experience and will be great assets as we reposition our bank and take the wider group to the next phase of its development.
“Together with Euan Sutherland, group chief executive and Niall Booker, our new bank chief executive, we now have a formidable top team with exceptional financial, strategic and operational expertise across retail and financial services.”
Mr Sutherland said: “Richard Pennycook has proven long-term experience working at the top of some of Britain’s leading companies and will make a valuable addition to our organisation.
“Richard Pym is widely respected across the financial services industry.
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Hide Ad“His appointment, together with that of Niall Booker as chief executive of The Co-operative Bank, means the bank is in very good hands.”
Mr Pennycook, whose previous roles include group finance director at RAC and JD Wetherspoon, will take up his new role next month, initially on an interim basis.
He said: “I am delighted to be joining The Co-operative Group to help drive its development.
“With its strong brand and loyal customer base, the group is ideally positioned to address the challenges it now faces.
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Hide Ad“Together with Euan and the rest of the team, I look forward to helping The Co-operative Group realise its significant potential.”
Mr Pym joined Bradford & Bingley as chief executive in 2008 a month before the Government took control of its mortgage book.
In 2010, he was made chairman of UKAR, which brought together the bulk of the mortgage books of B&B and Northern Rock.
He added: “We are clearly focused on actions to strengthen the bank’s balance sheet and resolving the current underlying issues.
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Hide Ad“This will allow us to continue to provide customers with an alternative choice to the traditional banks.
“The British banking system is very concentrated, with a small number of institutions, and it is important that The Co-operative Bank plays its full part in maintaining a competitive landscape for customers.”