The Co-op Bank has confirmed it made a loss of £1.3bn last year and will remain loss-making for the next two years as the troubled lender published its twice delayed annual results.

The lender said it had begun talks on a £400m fund raising and warned that without the new money it would be in breach of its minimum capital requirement.

Niall Booker, chief executive of the Co-op Bank, apologised for the situation and said the lender would be clawing back about £5m in bonuses from former directors and executives due to the failings.

“We appreciate that customers and other stakeholders continue to feel angry about how past failings placed the future of the business so seriously at risk. I would like to apologise to them, to thank them for their continued loyalty and to thank colleagues for their commitment during such difficult times,” he said.

‎Mr Booker received total pay for 2013 of £1.73m after being appointed to the job last June. In addition to a salary of £669,000, he also received a £140,000 monthly “allowance” based on what the bank said was “the broad range of specialist skills required” in his job. ‎On a 12-month basis, this would equate to a pay package for Mr Booker this year of more than £2.5m.

Harry Wilson

By Harry Wilson, Banking Editor