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.

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“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.