Co-op Bank looks at £750m raising if sale plan fails

Co-operative Bank said it would look to raise up to £750m of extra core capital if its sale plan failed as it reported full year pre-tax losses of £477m.

Co-op said the extra cash could raised via a debt-for-equity swap alongside a £300m capital raising to meet "Tier 1" funding requirements laid down after the financial crash of 2008.

The bank is looking to sell shares in itself to raise the money needed against a low revenue backdrop of poor interest rates and high costs to complete its turnaround plan.

It said if the sale did not proceed but a capital raising is successful, it is still anticipated that the bank would need to undertake further capital market issuances, including approximately £250m of Tier 2 capital.