Co-op Bank ‘draws line’ under near-collapse and past scandals with pared-back losses

The former reverend, who was nicknamed the “Crystal Methodist”, was filmed handing over £300 for what was apparently crystal meth and cocaine in 2013 and later pleaded guilty to possessing class A and class C drugs.

Earlier this month the Treasury ordered an independent review into whether regulators should have done more to spot problems at Co-op Bank before it fell into difficulty.

The bank’s recovery has been hampered by rock bottom interest rates in the wider economy and fierce competition in the mortgage market.

Mr Coleman said the mortgage market was proving “extremely challenging” but that overall market conditions had improved this year, allowing it to make a “strong start to 2018”.

He said the recapitalisation plan last year had “transformed” the bank’s capital position and provided “a solid platform to deliver our future plans”.

Mr Coleman said the lender’s priority now was to swing to a profit, but declined to give a timescale to the ambition.

He added: “The turnaround is already bearing fruit. We’ve learned the lessons from the past and significantly improved the governance of the organisation and our risk management.

“This will be a simpler bank going forward.”