20th August 2015
The Co-operative Bank has reported a pre-tax loss of £204.2m for the first six months of 2015, partly as a result of steep legal costs.
It follows a far lower £77m loss for the same period last year. The latest results include net losses of £38.2m predominantly on sale of the bank’s non-core assets, which were sold off to reduce debt levels
In a statement chief executive Niall Booker said during the first half, the management team “continued to make real progress towards turning the bank around”.
He added: “Our work to improve resilience, to bring aspects of our business back within our risk appetite and to reduce costs is on course, and we are encouraged by the headway we have made in this period.”
In 2013 the troubled bank, formerly fully owned by the Co-operative Group, reported its worst set of financial results in its 150-year history, recording a £2.5bn loss in the year to December 2013, with the banking arm accounting for £2.1bn of the total.
The same year, the bank’s chairman, Paul Flowers resigned after the bank got into financial difficulties – and it was later revealed that he had a drug problem.
Investors including US hedge funds came to its rescue after it emerged that it needed to raise £1.5bn to shore up a gap in its accounts. Today the Co-op group, owns a third of the bank.
In 2014 the bank failed to pass a Bank of England stress test, which was designed to examine its ability to hold-up during another financial crisis.