Co-op announce losses of £75.8m

22 August 2014

Co-op The troubled Co-operative Bank have announced pretax losses of £75.8m for the first six months of this year. Losing that amount of money is not a thing to be sniffed at all.

They've said that "much needs to be done" in turning around the company, and hopefully, someone was on-hand to give them an award for stating the obvious.

That said, it isn't all gloom - this is a significant reduction on the £844.6m loss during the same period last year, but at the same time, customers clearly aren't happy as the bank said they'd lost 28,199 current accounts in the six months to 30th June.

Chief executive, Niall Booker, said the "deep-rooted issues" would continue to impact on the company's performance for a while yet.

"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. By the measures of capital and liquidity the bank is considerably stronger than it was a year ago. We are ahead of schedule in the disposal of non-core assets and have improved governance, particularly at board level. However, the issues we continue to face in building a sustainable business are deep-rooted and there remains much to be done," he said.

"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."

One thing working in their favour it seems, is that for the most part, people just can't be bothered to switch their current accounts.

TOPICS:   Banking

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