Banking loss reported by Co-op Group

<p>The Co-operative Group has announced a big banking loss.</p>

The Co-operative Group has lost over £500 million in the first six months of the year.

It was announced by the company that it made big losses from its banking arm in the first half of 2013, recording a £559 million shortfall after it wrote off £496 million of bad loans at Co-op Bank.

Co-op Group chief executive Euan Sutherland explained that the bad results were expected by the organisation after the bad loans were written off earlier in the year.

"My first few months in the role have been focused on putting in place the recovery plan for the bank," he said, adding that the bank faces "well-documented challenges" in the near future.

Co-op Bank alone reported a total loss of £709 million, though the group saw its food sector and other businesses report profits.

The share price of the Co-op Bank is down this morning (August 29th) on the back of the announcement. At 08:11 BST, its stocks were trading 3.61 per cent lower than at the start of the day's trading.

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