Co-operative Bank writes off £148m in IT costs

30 August 2013

The Co-operative Bank has written off a further £148 million in IT costs.

As a result, plans to implement a new core banking system have now been scrapped by the UK institution.

Earlier this year regulators told the troubled bank to plug a £1.5 billion gap in its capital and it has since accelerated its plans to split the business.

It will be made up of an asset management arm, which will bear the brunt of its bad loan losses, and the core bank that will continue to support retail banking and small business customers.

In the institution's half-year results it revealed losses of £709 million due to loan impairment charges, customer mis-selling provisions and the IT systems write-down.

In the interim results announcement the bank said the directors have concluded that the IT assets previously under creation to replace the core banking platform "will no longer be implemented as they are inconsistent with the bank's strategy going forward, resulting in a write down of £148.4 million".

By Asim Shah

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