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| Co-op bank reports £1.3bn loss and halts payments to former bosses | |
| (35 minutes later) | |
| The Co-op banking arm reported a £1.3 billion annual loss today as it warned its legacy issues will continue to hit its financial performance for some time. | The Co-op banking arm reported a £1.3 billion annual loss today as it warned its legacy issues will continue to hit its financial performance for some time. |
| The business, which is now under the control of bondholders following a refinancing to fill a £1.5 billion hole in its balance sheet, said it expects to make losses during this year and in 2015. | The business, which is now under the control of bondholders following a refinancing to fill a £1.5 billion hole in its balance sheet, said it expects to make losses during this year and in 2015. |
| Chief executive Niall Booker said management kept the bank alive during 2013 but that there were still "significant issues" which need to be resolved. | Chief executive Niall Booker said management kept the bank alive during 2013 but that there were still "significant issues" which need to be resolved. |
| The business added that £5 million of deferred payments will not be made to former executives who left the bank prior to its collapse. | The business added that £5 million of deferred payments will not be made to former executives who left the bank prior to its collapse. |
| It also emerged in the annual report that Mr Booker was paid £1.7 million last year, including £943,000 as a fixed allowance "that takes account of the broad range of specialist skills required of the role". | It also emerged in the annual report that Mr Booker was paid £1.7 million last year, including £943,000 as a fixed allowance "that takes account of the broad range of specialist skills required of the role". |
| The allowance is equivalent to £140,000 per month and is payable quarterly up until June 2015, the Co-op said. | The allowance is equivalent to £140,000 per month and is payable quarterly up until June 2015, the Co-op said. |
| Mr Booker, who took the role in June, said he plans to simplify the business, reduce costs and return the bank to its roots in focusing on retail and small and medium-sized business customers. | Mr Booker, who took the role in June, said he plans to simplify the business, reduce costs and return the bank to its roots in focusing on retail and small and medium-sized business customers. |
| However, the recovery was dealt a blow last month when the Co-op revealed it needed to raise another £400 million from shareholders in order to cover compensation costs, including for PPI redress. | However, the recovery was dealt a blow last month when the Co-op revealed it needed to raise another £400 million from shareholders in order to cover compensation costs, including for PPI redress. |
| It meant the starting capital position of the bank in its five-year recovery plan was weaker than in the plan announced last year. | It meant the starting capital position of the bank in its five-year recovery plan was weaker than in the plan announced last year. |
| PA | PA |