Co-op bank reports £1.3bn loss and halts payments to former bosses
Friday 11 April 2014
The Co-op banking arm reported a £1.3 billion 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 £1.5 billion 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 £5 million of deferred payments will not be made to former executives who left the bank prior to its collapse.
It also emerged in the annual report that Mr Booker was paid £1.7 million last year, including £943,000 as a fixed allowance "that takes account of the broad range of specialist skills required of the role".
The allowance is equivalent to £140,000 per month and is payable quarterly up until June 2015, the Co-op said.
Mr Booker, who took the role in June, said he plans to simplify the business, reduce costs and return the bank to its roots in focusing on retail and small and medium-sized business customers.
However, the recovery was dealt a blow last month when the Co-op revealed it needed to raise another £400 million from shareholders in order to cover compensation costs, including for PPI redress.
It meant the starting capital position of the bank in its five-year recovery plan was weaker than in the plan announced last year.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 UK weather: Snow to fall during coming week with sub-zero temperatures to last until early February
- 4 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
UK weather: Snow to fall during coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Ellen DeGeneres leads Johnny Depp, Gwyneth Paltrow and Paul Bettany in revealing game of Never Have I Ever
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...