Co-op Group hit by huge banking losses

The Co-operative Group has reported more than half a billion pounds worth of losses in the first half, after sizeable write-offs at its troubled banking arm.

Reporting its results for the first half, the group said it had lost £559m in the six months to end of June, having written off £496m of bad loans at Co-op Bank. Including the write-downs, Co-op Bank alone reported a total loss of £709m before tax, compared to a loss of £58.6m the previous half year. The Co-op Group's food and other businesses reported profits which offset the loss a little. The bad loans relate mostly to Britannia Building Society, which merged with Co-op Bank in 2009. The bank has faced pressure from regulators to strengthen its balance sheet after revealing earl...