The Co-Operative Group has announced the appointment of veteran banker Niall Booker as chief executive at the Co-Op's struggling Bank.
Booker will also take up the position of Deputy Chief Executive of the Co-Operative Group. Booker will begin his new roles at the Group from 10 June and will also serve as a board member. The 54-year-old joins from HSBC, where he has spent more than 30 years in a variety of roles.
Booker replaces Barry Tootell, who resigned earlier this month after the Co-Op's Bank debt was downgraded to junk status by Moody's. In March, the Co-Op Bank announced annual losses for 2012 of £674 million, including £377 million of bad property loans made by Britannia Building Society, which the Co-Op acquired during the 2008/2009 credit crisis.
The new chief executive's immediate job will be to fix the multitude of problems in the banking arm, which is believed to be facing a capital shortfall of between £1 billion and £1.5 billion and has already ceased new business lending. Booker's appointment is also expected to quash speculation that the bank is to be sold or closed.
Commenting on the appointment of Booker, Euan Sutherland, Group Chief Executive of The Co-operative Group, said, “We are delighted that Niall is joining The Co-operative Group. With his strong background across the banking sector, covering both retail and corporate, he is the ideal person to lead The Co-operative Bank at this important time in its history. He clearly brings the strategic and operational skills that we need to help take the Bank to the next stage of its development.
“The Board and I are confident that Niall will add tremendous value, helping us work through the complex issues that we currently face as we work to re-position our Bank. The Co-operative Bank has a strong future. We will build on our strengths as a member-owned Bank, with a loyal customer base and an ethical heritage. While there is much work to be done, we are confident that we can continue to provide a distinctive, consumer-led alternative on the high street, offering real choice for customer", he said.
