Britain's Co-operative Bank reported a narrower loss for the first six months of 2014 compared with the same period a year earlier. As Joanna Partridge reports, axing jobs and closing branches following a restructuring is beginning to pay off.
It made a loss, but it's making progress. Britain's Co-operative Bank reported a pretax loss of £75 million for the first six months of 2014. But that's significantly better than the £844 million loss Britain's seventh-biggest lender made in the same period last year. Co-op is beginning to see the effects of axing jobs and closing branches, after a restructuring which saw it fall under the control of bondholders. The bank, with over 4.5 million customers, came close to collapse in 2013 after a £1.5 billion capital shortfall was exposed. A recapitalisation saw the Co-operative Group's stake in the bank fall to 20%. The bank's Chief Executive said in a statement the lender is considerably stronger than a year ago in terms of capital and liquidity, and they're ahead of schedule in disposing non-coreassets. But they admit there's much left to do, and will continue closing branches in the fourth quarter.