Bank branches to close

File photo dated 07/11/11 of a sign outside a branch of a Co-operative Bank in Derby, as the Co-op's stalled acquisition of 632 bank branches being sold by Lloyds was under further pressure today after a rival tabled a renewed offer. PRESS ASSOCIATION Photo. Issue date date: Thursday April 12, 2012. NBNK, which is headed by former Northern Rock boss Gary Hoffman, has offered to underwrite a deal that would see the branches floated on the stock market to create the UK's first 'no bonus bank'. See PA story CITY Lloyds. Photo credit should read: Rui Vieira/PA Wire

The group has announced plans to cut its branch network by at least 15 per cent by the end of next year, closing around 50 of its 324 branches nationally, leading to significant job losses.

The bank said it would “significantly enhance” its internet and mobile banking services as a result, but has told Chad it has not yet confirmed which branches are to close.

A spokesman for the group said: “Whist we have announced that we expect to rationalise our branch network by at least 15 per cent by the end of 2014, at this stage we have not announced individual branches that are due to close.”

The details emerged as it unveiled a rescue plan, drawn up earlier this month.

The group said investors who bought bonds in its troubled banking arm will be given 70 per cent of the bank, leaving it with 30 per cent.

In a message issued via the Co-operative Group’s website, chief executive Euan Sutherland said the rescue package had been put in place as an alternative to asking for a bailout from the taxpayer.

But he admitted there will be “significant” job losses, saying that staff will be informed first.

The group added that the bank’s outlook remains “challenging”, although monthly bad debt charges have fallen.

The decision has been forced on the bank by regulators after it endured massive losses in recent years, including a half-year loss of £709.4m after its takeover of Britannia Building Society in 2009.

The group, which traces its roots back to 1844, took out advertisements in national newspapers to reassure customers that the bank will retain its ethical approach.

The Co-op will remain the bank’s single largest shareholder.

No official date for confirmation of branch closures has yet been announced.