Co-op Bank 'inviting offers' as it puts itself up for sale

The Co-op Bank has announced it is putting itself up for sale and "inviting offers" to buy all its shares, four years after the troubled lender almost collapsed.

The loss-making bank, which has four million customers, made the announcement as concerns increase on its capital position.

The bank said low interest rates and higher than anticipated costs had made it harder for it to meet longer term UK bank regulation.

Announcing the sale, the bank said it had made "considerable progress in delivering a turnaround plan" since its near-demise in 2013, which came four years after its merger with the Britannia building society.

The board said the Co-op Bank's "customer-led ethical position, attractive product set, multi-channel approach and four million customers constitute a strong franchise with significant potential".

The Co-operative Group, which owns 20% of the bank, last week began sweeping changes, with chief executive Richard Pennycook stepping down.

The bank said it will also consider alternative options to the sale to build capital, including raising cash from new and existing investors.

The bank confirmed it will post a "significant" loss for the year to December 31, though the bank's chairman said it remained confident of meeting its capital requirements.

The Bank of England's Prudential Regulation Authority said it welcomed the bank's actions.

"We will continue to assess the bank's progress in building greater financial resilience over the coming months," a spokesman said.