Co-op Bank losses double to £1.3bn

The Co-operative Bank today revealed that it racked up losses of almost £1.3 billion last year and does not expect to deliver a profit in the next two years.

The lender has shed about 1,000 employees since discovering a £1.5bn black hole in its finances. The capital shortfall led to former parent Co-operative Group ceding control of the bank to a group of powerful bondholders.

Co-op Bank chief executive Niall Booker said: “The results today reflect the magnitude of the issues that have come to light since I joined the Co-operative Bank ten months ago.

“It is early days but initial progress on our business plan is encouraging and we remain enthusiastic about the long term potential for the bank.”

For the year to 31 December, Co-op Bank posted an operating loss of £1.28bn, compared with £674.9 million the previous year.

Yesterday, the Co-op Group was rocked by the resignation of former City minister Lord Myners, who had been brought in to review the embattled mutual’s governance systems.