UK's embattled Co-op banking arm reports £1.3bn loss

The UK's Co-op banking arm reported a £1.3bn 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 £1.5bn 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.

The business added that £5m of deferred payments will not be made to former executives who left the bank prior to its collapse.