Co-op Bank sheds 25,000 customers

L But half-time losses narrow l Boss says it has been tough journey

The lender has also agreed to divorce itself from the Coop Group’s pension scheme. However, the bank will keep the Co-op brand and has pledged to retain “ethics at its heart”.

Co-op Bank has hailed the rescue deal as enabling it to meet regulatory requirements on long-term capital cushions, and allowing it to continue as a stand-alone bank.

The group, which has about four million customers overall, said its current account numbers fell nearly 2 per cent to 1.4 million in the first half, while loans fell to £15bn from £15.3bn a year ago.

It saw fewer mortgage completions – down £100m at £1.4bn – and redemptions almost doubled to £1.3bn from £700m a year earlier.

Coleman added that it had been a “challenging journey” in recent months, but said that customer account losses had “moderated” in May and June.

The group saw its full-time staff workforce fall by nearly 900 to just over 3,300, and Coleman warned that the bank would cut its headcount further to reduce its overheads.

This will mainly come from reductions in temporary staff and contractors – which halved in the first six months of 2017 – as well as natural staff turnover.