Co-op Bank confirms losses of £1.3 BILLION for 2013

The £1.3billion loss, which was in line with expectations, was due to the bank’s failure to acquire 632 branches from Lloyd’s Bank last year.

15:23 11 April 2014

The Co-op Bank has apologised as it confirmed the widely expected news that it lost £1.3 billion in 2013 because of its failure to acquire 632 branches from Lloyd’s Bank. 

 

The deal collapsed after it was discovered that there was a £1.5bn hole in the Co-op Bank’s balance sheet. 

 

In March, the bank was also forced to admit that there was another £400m black hole in its finances, forcing it to issue new shares in order to raise more funds. 

 

The bank said that it does not expect to make a profit in the next two years. 

 

Co-op Bank chief executive Niall Booker said: "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 difficult times."

Due to the huge loss, the bank said that it will not pay out £5 million to former employees who left the company last year. 

 

It is also believed that up to 40 of its high street branches will close this year.