Co-Op bank reduces losses despite shrinking account numbers

The Co-Operative Bank reduced its losses in the first half of the year, but saw 25,000 personal accounts being closed in the same period.

The bank, which was rescued in 2013 with an investment from a group of US hedge funds, is still fretting about its future as it seeks a long-term growth strategy.

Losses narrowed to £135m from £177m for the first six months of the year, as it moved to make changes to its IT systems and cut costs.

The bank agreed a further rescue deal in June to shore up its balance sheet with a £700m cash injection from investors.

Liam Coleman, Co-Op Bank chief executive, thanked the bank’s customers despite the drop to around 1.4m accounts.

“Following a period of uncertainty around the future of the bank, I’d like to express my thanks to our customers for their loyalty and our colleagues, regulators and wider stakeholders for the support they have shown,” Coleman said.

“Of course there is more hard work ahead, and like other banks, we recognise there are risks to the UK economy, but this is a great bank and we are positive about the future.”