The Co-operative Group experienced a significant decline in performance last year due to the failings of its banking division.
New corporate figures released by the major UK organisation yesterday (21 March) revealed it recorded losses of £673.7 million ($1.02 billion) in 2012, primarily because its bank's exposure to bad loans increased significantly over the course of the year.
This represents a markedly worse performance than the profit of £54.2 million registered 12 months earlier and the company revealed that its losses on bad loans went up by nearly 400 per cent in the 12-month period to a total of £474 million.
It is thought that a large proportion of the company's declining performance can be attributed to the state of its deal to purchase 632 branches from Lloyds.
Struck last July, this agreement has not been able to be completed due to technical issues and the weak nature of the general economic environment.
Peter Marks, group chief executive, said: "The group's statutory profit was adversely impacted by a number of factors within the bank."
By Claire Archer