The Co-operative Bank has been struck with yet another major blow as it’s been announced that the bank must raise a further £400m.
The Co-operative Group, which owns 30% of the bank, would have to contribute more than £100m to take part in the fundraising.
The C-op Bank is now expecting to make a loss of £1.2-£1.3bn this year, despite receiving a £1bn injection at the end of last year from a group of private investors.
New CEO Niall Booker admitted that the bank has had to cut around one in 10 of its 10,000-strong workforce.
The additional £400m is related to costs from PPI mis-selling and problems with mortgages it issued.
“The starting capital position of the bank for the four to five year recovery period is weaker than in the plan announced last year,” said Booker.
He added: “We have started to simplify the business, reduce costs and de-risk assets as we drive the change needed to return to our roots as a bank focused on our retail and SME customers.”