£1.3bn loss for beleaguered Co-op bank
The Co-op's bad run of form continued apace, with the banking arm reporting a £1.3 billion annual loss today. Only last month, they were scrabbling around for loose change, trying to raise £400m.
The bank is now in the hands of bondholders following a refinancing which aims to plug the £1.5 billion void in its balance sheet, but they expect that they'll be making losses this year and well into 2015.
Chief executive Niall Booker said management kept the bank going during 2013 but sadly for them, there's still a whole load of "significant issues" which need to be sorted. In a bid to keep the bank alive, £5 million of deferred payments are not going to be made to former executives who left before the kerfuffle.
So how are they fixing things? Well, Booker says he wants to simplify the business, take costs down and get the bank back to its roots, focusing on retail and small and medium-sized business customers.
Can the Co-op bank pull through?