The Co-operative Bank has reported a pre-tax loss of £75.8 million from January to the end of June this year, in the first report the lender has produced since it revealed in April that there was a loss of £1.3 billion in 2013.
The bank, which is still very much in a state of recovery following its near collapse, has said that it is encouraged by the progress made so far in 2014. It is a vast improvement on the £845 million loss reported for the same period last year.
£39 million was set aside to cover misconduct charges, the majority of which were in relation to technical breaches of the Consumer Credit Act – a relatively small figure in comparison to last year's charges of £167 million.
Chief executive Niall Booker commented: "We have gone a long way to ensure the sustainability of the bank and the bank is much stronger today by almost any measure than it was a year ago."
However, he added that although the bank has gained 9,700 new customers during the recent six-month period, it has lost 38,000 current account customers in that same time. "The loss of any customer is a mortal wound to somebody like me who has been in the industry for a long period of time," he said.
The near collapse and the recovery
The Co-op Bank's poor state came to light when its balance sheet confirmed a black hole of £1.5 billion, causing a proposed takeover of more than 600 Lloyds branches to fall through.
The bank was then taken over by senior creditors, leaving the Co-op Group with a 20% stake. This led to the departure of senior figures such as the former chairman Paul Flowers, who was in the news recently for having become entangled in a drugs scandal.
The Co-op Group made a total loss of £2.5 million last year, and Booker noted that the bank does not expect to make a full-year profit until 2016.
Hire responsible credit controllers
Every company needs conscientious credit control staff who will be able to carry out their job responsibly. Our specialist consultants can help you identify the strongest candidates for your vacancies, whether you are looking for a credit manager or a part-time credit controller.
For more information about our recruitment advice, give the team a call on 020 7650 3199 or email recruitment@portfoliocreditcontrol.com.
View Our Resources
Rules for credit brokers further tightened
The Financial Conduct Authority (FCA) has announced new rules for credit brokers, which will co...read more
How a great credit control analyst benefits business
Credit analysts can be found in all kinds of organisations and sectors. Essentially their prima...read more
Why is Credit Control recruitment important?
It is vital to have good Credit Control staff in place, particularly for small to medium-sized busin...read more
New Director Appointed!
Portfolio, leading specialist recruiter’s in payroll, credit control, HR & reward and procurem...read more