Co-operative Bank hit with PPI claims costing £118.6m
The Co-operative Bank has been hit with a bill of £118.6 million for the mis-selling of payment protection insurance (PPI).
The PPI compensation payments pulled the bank further into debt, as it fell to £118.6m for the three months to September 30th, compared with an £87m loss a year ago.
Several other large banks had taken extra provisions against PPI in their third-quarter results owing to the increase in claims before the deadline at the end of August this year.
The Times reported that the bank had warned that the cost would be between £55m and £75.
Previously, the Co-operative Bank suffered substantial losses after it had to decrease the value of commercial property loans made by Britannia Building Society which it acquired in 2009.
The society has since been through several restructuring moves which diluted the Co-op Group’s holding on it and it is now completely owned by a group of hedge funds and outside investors.