The Co-operative Bank has apologised to customers and confirmed that it made a loss of £1.3 billion in 2013.
The losses are in line with market expectations and were a result of the bank’s failed bid to takeover 632 branches of Lloyds-TSB after a £1.5 billion black hole was discovered in its finances
Discussing the annual report, Chief Executive Niall Booker said:
“The results today reflect the magnitude of the issues that have come to light since I joined The Co-operative Bank ten months ago. In addition, as we outlined on the 24th March 2014, further costs have materialised since the completion of the Liability Management Exercise (LME) in December 2013 as a result of a continuing review of The Co-operative Bank’s legacy operations, assets and liabilities by the new executive team.
During 2013 the task for the new management was to keep the Bank alive. The successful completion of the LME prevented the Bank from going into resolution, preserving the Bank for our customers and protecting jobs without cost to the taxpayer. However, there continue to be significant issues which need to be resolved. As already announced on the 24th March 2014, the management team’s continuing review has unearthed a range of conduct and legal issues since December 2013 which has contributed to the need to further strengthen the Bank’s capital position over and above The Co-operative Group’s 2014 contribution.”
Booker concluded by apologising to the company’s 4.7 million customers, saying:
“We appreciate that customers and other stakeholders continue to feel angry about how past
failings placed the future of the business so seriously at risk. I would like to apologise to them, to
thank them for their continued loyalty and to thank colleagues for their commitment during such