Co-operative Bank still in recovery as it reports £75 million in pretax losses

The Co-operative Bank has reported a statutory loss before tax of £75.8 million with the number of permanent employees reduced by 13% in first half of 2014.

This is the first set of financial results since it reported a £1.3 billion loss for 2013 that saw the North-West based bank on the brink of collapse, after the discovery of a £1.5 billion hole in its balance sheet.

Chief executive Niall Booker said: “Considering the scale of the challenge we faced a year ago we are encouraged by the progress made to ensure the stability of the Bank.

“Transforming the organisation into a viable and profitable business which generates capital in the long term still requires significant change - both operationally and culturally.

“The Core Bank continues to remain stable. In the first half of the year more people switched into the Bank than in the second half of 2013.

“Although we have also seen an increase in the number of people switching out of the Bank, the net numbers remain small relative to our total number of current account customers whose continuing loyalty is deeply appreciated. Recent trends suggest this net outflow of retail customers has slowed.

“We have begun re-engaging with customers and over 73,000 responded to our Ethical Policy Poll to renew and refresh the Bank’s ground-breaking Ethical Policy, the outcome of which is due in the autumn.

“Over the second half of 2014, we are also planning to re-invest in the brand and its distinctiveness in the market as we continue to focus on restoring customers’ confidence and trust.”

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