Co-op Bank reports high losses for 2015

Co-op Bank reports high losses for 2015

The Co-operative Bank has reported half-yearly losses of £204.2 million, from £77 million a year earlier.

The group have said they do not expect to make a profit until 2017. The bank escaped a fine last week for misleading investors as the regulator believed it needed the money to get the bank back on track.

In the first half of 2015, the bank set aside £49m to cover misconduct and legal charges and lost £38.2m on sales of assets needed to reduce the bank’s overall levels of debt. It also spent £33.1m on improving “systems and processes” and making the bank more efficient.

Chief Executive Niall Booker said in a statement:

“Addressing legacy issues will continue to dominate financial performance for some time and there is considerable work ahead towards a full recovery. The transformation of the bank remains challenging.

We won’t be profitable in 2015 and we won’t be profitable in 2016 either.”