The Co-operative Bank has said it will miss its already delayed deadline for publishing its annual report and accounts. The news follows the bank seeking further funding after discovering another hole in its balance sheet last month.
The Co-op’s annual results should have been published no later than today. However, in order to enable the bank to finalise its accounts, this has now been pushed back to April 11. The deadline had already been postponed from 26 March.
Following a £1.5 billion recapitalisation deal, which was finalised in December 2013, the bank is 70% owned by its lenders, which includes hedge funds. The Co-op is now seeking an additional £400m in order to ensure it meets its minimum capital requirement.
The bank had previously announced that it expects to make a loss of £1.2 billion for 2013.
The annual report will contain details of remuneration for senior management at the bank and information on the financial challenges the bank is facing, such as mis-sold payment protection insurance (PPI) compensation claims.
As well as the well-documented financial issues, the bank has also been impacted by allegations that former chairman Paul Flowers was connected with drug supply. Meanwhile, it could face two regulatory inquiries into its near financial collapse by the Financial Conduct Authority and Prudential Regulation Authority.
The bank’s recapitalisation plan has led to the public and organisations questioning its ethical credentials and whether it will be able remain an option for responsible savers and investors. The bank has argued that ethics are in its constitution and will continue to have regard for the “highest standards of ethical principals”.
Photo: The Co-operative via Flickr