Co-op Bank announces £1.3bn loss

THE CO-OP BANK has announced it suffered losses of around £1.3bn in 2013.

The losses fall largely in line with expectations and come in the wake of the failed takeover of 632 Lloyds Bank branches last year. The deal fell apart following the discovery of a £1.5bn black hole in the Co-op Bank’s balance sheet.

A return to profit in 2014 or 2015 is not expected, either, the bank said.

Its chief executive Niall Booker also apologised to customers. He said: “We appreciate that customers and other stakeholders continue to feel angry about how past failings placed the future of the business so seriously at risk.

“I would like to apologise to them, to thank them for their continued loyalty and to thank colleagues for their commitment during such difficult times.”

Yesterday it emerged the Lord Myners had left the board amid growing opposition to his planned reforms to the beleagured mutual’s governance structure, which he has subsequently confirmed he intends to follow through with.

He said the mutual would have a “good future” if it did “the right things on governance and leadership”.

He noted the bank’s previous regime was “breathtakingly value-destructive”.

Co-op Bank said it would not pay out £5m to former executives who left the bank after its near collapse last year.

In March, the bank was forced to admit it had found another £400m black hole in its finances, forcing it to issue new shares in an attempt to raise the funds from investors.

The shortfall emerged following the discovery of additional costs related to past misconduct and poor documentation.