Co-operative Bank sees annual losses double

author avatar by 8 years ago

Co-operative Bank’s annual pre-tax losses have more than doubled to £610m, up from just £264m last year.

Provisions for the mis-selling of payment protection insurance saw legal risk charges increased to £193m, contributing largely to the change.

The bank almost collapsed in 2013, after bad property loans contributed to a £1.5bn hole in its finances.

However, since then, it has taken action to improve its financial position and says it is in a much “stronger” position than it was a year ago.

A bank spokesperson said branch closures have had a positive impact on operating costs, whilst they have also taken steps to improve their balance sheet.

Chief Executive Niall Booker, said, “Whilst the Bank as a whole will report a loss before tax in 2016 and 2017, we expect a return to operating profitability in the core bank before the end of 2017.”

Mr Booker’s contract runs until the end of 2016, but the bank has not yet announced a replacement, despite reports that it has approached several other senior figures in the banking industry.