Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc, Britain’s two publicly owned lenders, barely passed the Bank of England’s first stress test, while Co-Operative Bank Plc failed.

Eight lenders in the UK will learn tomorrow whether they have passed Bank of England tests showing how they would cope with severe economic stress.

Britain’s loss-making Co-operative Bank said it was confident of raising the extra funds it needs to secure its future even without the backing of customer-owned parent, the Co-operative Group.

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 Co-op’s banking arm revealed a setback to its recovery today after admitting it needs to raise another £400 million to cover past issues.