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Co-operative Bank losses widen to £204m | Co-operative Bank losses widen to £204m |
(35 minutes later) | |
The troubled Co-operative Bank has reported bigger losses, in part due to higher legal costs. | The troubled Co-operative Bank has reported bigger losses, in part due to higher legal costs. |
Pre-tax losses for the first six months of the year were £204.2m, compared with losses of £77m a year earlier. The figure was slightly better than expected. | Pre-tax losses for the first six months of the year were £204.2m, compared with losses of £77m a year earlier. The figure was slightly better than expected. |
It included losses of £38.2m on sales of assets needed to reduce the bank's overall levels of debt. | It included losses of £38.2m on sales of assets needed to reduce the bank's overall levels of debt. |
The bank said it was now in better shape to withstand economic stresses. | The bank said it was now in better shape to withstand economic stresses. |
The Co-op Bank was owned by the Co-operative Group, but in 2013 it contributed £2.1bn of losses of £2.3bn - the largest in the Co-operative Group's 150 year history. | |
It was rescued by investors, including US hedge funds, after a £1.5bn black hole was discovered in its accounts and the Co-op now owns just a third of the bank. | |
The black hole has been linked to losses on commercial property loans, stemming from Co-op Bank's 2009 merger with the Britannia building society. | |
Chief executive Niall Booker, said: "Our work to improve resilience and reduce costs is on course. | |
"In addition, although the core bank remains work in progress, its performance is also beginning to improve as we increase efficiency, continue to re-invest in the brand and work with customers to offer competitive products that meet their needs." |