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| Co-op Bank reports loss of £75.8m | Co-op Bank reports loss of £75.8m |
| (about 1 hour later) | |
| The troubled Co-operative Bank has reported a pre-tax loss of £75.8m for the first half of 2014, down from £845m a year ago. | The troubled Co-operative Bank has reported a pre-tax loss of £75.8m for the first half of 2014, down from £845m a year ago. |
| It has also cut staff numbers by 13% in the first six months of the year. | It has also cut staff numbers by 13% in the first six months of the year. |
| The bank was rescued in 2013 after discovering a £1.5bn capital shortfall. | The bank was rescued in 2013 after discovering a £1.5bn capital shortfall. |
| "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," said chief executive Niall Booker. | "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," said chief executive Niall Booker. |
| Scandals | Scandals |
| After the discovery of the capital black hole, a deal was reached which saw the wider Co-op Group cede majority ownership of the bank to bondholders, including a number of US hedge funds. | After the discovery of the capital black hole, a deal was reached which saw the wider Co-op Group cede majority ownership of the bank to bondholders, including a number of US hedge funds. |
| Last year, before the bank rescue, it was hit by a separate scandal when its chairman Paul Flowers was arrested in connection with a drugs supply investigation. | Last year, before the bank rescue, it was hit by a separate scandal when its chairman Paul Flowers was arrested in connection with a drugs supply investigation. |
| In April the bank confirmed it made a loss of £1.3bn for 2013. | In April the bank confirmed it made a loss of £1.3bn for 2013. |
| Mr Booker reiterated that the bank did not expect to achieve a full-year profit until 2016. | Mr Booker reiterated that the bank did not expect to achieve a full-year profit until 2016. |
| But he also said the bank was now ahead of schedule in the disposal of non-core assets and had "improved governance, particularly at board level". | But he also said the bank was now ahead of schedule in the disposal of non-core assets and had "improved governance, particularly at board level". |
| Chris Wheeler, a banking analyst at Mediobanca, told BBC 5 live that "there are signs of progress" but there were still "problems they have to deal with," including a drop in deposits. | Chris Wheeler, a banking analyst at Mediobanca, told BBC 5 live that "there are signs of progress" but there were still "problems they have to deal with," including a drop in deposits. |
| Mr Wheeler also said that a reduction in money set aside for bad debts "flattered" the profit figures. | Mr Wheeler also said that a reduction in money set aside for bad debts "flattered" the profit figures. |
| The bank also lost 28,199 current accounts in the first half of 2014, but that figure represented less than 2% of accounts. |