Co-op Bank reports £1.3bn loss

The bank has had a turbulent year, as it made a failed bid to buy over 600 branches from Lloyds Bank last year which collapsed after the discovery of a £1.5bn black hole in their balance sheet.

The bank has said it did not expect to make a profit in 2014 or 2015 and added that it would not pay out £5m to former executives who left the bank after its near collapse last year.

However, chief executive Niall Booker will receive a £2.9m pay package and £1.2m bonus based on the future performance of the bank.

In December, the bank saw a rescue deal that saw its parent company, the Co-operative Group, lose control of the bank to a group of US hedge funds which took a 70% stake in the bank.

Co-op Bank chief executive Niall Booker said:

"We appreciate that customers and other stakeholders continue to feel angry about how past failings placed the future of the business so seriously at risk. I would like to apologise to them, to thank them for their continued loyalty and to thank colleagues for their commitment during such difficult times."