Co-op Bank names Andrew Bester its fifth boss in seven years

The Co-op Bank has named its fifth boss in seven years

The former head of Lloyds Banking Group’s commercial unit has been named as the Co-operative Bank’s fifth chief executive in seven years.

Andrew Bester, who had been tipped as a possible replacement for Lloyds boss Antonio Horta-Osorio, joined the Co-op Bank’s board on Monday and will take over from current boss Liam Coleman in the coming weeks after a handover process.

He will inherit a lender that has clawed its way back from the brink of a financial crisis in 2013 but is yet to return to the black after years of losses.

Mr Bester left Lloyds last year after a management overhaul in which he was replaced by David Oldfield, a 33-year veteran of the bank who is now thought to be Mr Horta-Osorio’s most likely successor.  

Mr Bester previously worked at Standard Chartered, where he rose to become chief operating officer for consumer banking, and began his career as an accountant at PwC.

Andrew Bester will be the Co-op Bank's fifth boss in seven years

Formerly a wholly owned subsidiary of the Co-operative Group, the bank was bailed out by a group of US hedge funds after the discovery of a black hole in its balance sheet five years ago.

The crisis was exacerbated by the resignation of its chairman, the reverend Paul Flowers, who was dubbed “the crystal methodist” after being filmed handing over £300 for what appeared to be cocaine and methamphetamines.  

Last year the Co-operative Group sold off almost all of the 20pc stake it had retained in the bank in the wake of the crisis in a new £700m rescue deal with its owners and bondholders.  

Mr Coleman revealed he would be standing down in June, just 18 months after taking over from Niall Booker, the former HSBC executive who came out of retirement to lead the bank in 2013. He replaced Barry Tootell, who in turn succeeded Neville Richardson in 2011.

Bob Dench, who in February was named the Co-op Bank’s fourth chairman in as many years, said: “Five years ago, the bank faced very significant problems and over that time we have made progress towards successfully tackling those issues. In Andrew we have found the right person to take us on to the next stage as we focus on achieving a sustainable profitable bank.”