Revamped Co-op Bank narrows annual loss

The Co-operative Bank has slashed its losses after publishing its first set of annual results since it struck a rescue deal with hedge funds.

The restructured lender reported an adjusted pretax loss of £140.3 million for the year to the end of December, compared with a deficit of £477.1m a year earlier.

The results were “supported” by continued spending cuts, including a £35.1m decrease in staff costs, though that was offset by a fall in income – down by £77.2m to £317.6m on a net interest basis. Headcount was down by about 800 to just under 4,000 people.

Yesterday’s results marked the first set of fullyear numbers since the bank completed a £700m deal that saved it from a potential collapse last year.

The refinancing and restructuring package, agreed to by the Co-op Bank’s hedge fund investors in the summer, saw the bank effectively sever its historic relationship with the Co-operative Group and separate itself from the wider mutual’s pension scheme.