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Britain's Co-op Bank reports first half loss of $175 million
August 10, 2017 / 6:19 AM / 4 months ago

Britain's Co-op Bank reports first half loss of $175 million

LONDON, Aug 10 (Reuters) - Britain’s Co-operative Bank reported a loss for the first half of 135 million pounds ($175.14 million) on Thursday, in its first earnings report since the lender agreed a $900 million rescue package with its investors.

The bank said the restructuring deal agreed in June, which will see its main U.S. hedge fund investors swap their bondholdings for shares, is progressing to plan and is currently on track to conclude by September.

Co-op Bank put itself up for sale in February, after its capital base dipped to levels unacceptable to Britain’s financial regulators as it grappled with heavy restructuring costs and weak income amid low interest rates.

The rescue deal put an end to the bank’s sale process, and came after months of negotiations with the bank’s U.S. hedge fund creditors which include BlueMountain Capital, Cyrus Capital Partners, GoldenTree Asset Management, and Silver Point Capital.

The lender said on Thursday that its first half loss had pushed its core capital ratio down to 9.8 percent from 11 percent at the end of 2016.

Co-op Bank provides banking services to almost 4 million retail and small and medium-sized enterprises in Britain. ($1 = 0.7708 pounds) (Reporting By Anjuli Davies and Lawrence White, editing by Rachel Armstrong)

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