The Co-operative Group has reported that it made losses of £559m in the first six months of the year, after writing off £496m of loans in its banking division.

In 2012 the Group recorded an £18m profit, but results for this year reveal the dramatic change of fortunes, which includes a £1.5bn capital shortfall that banking regulator the Prudential Regulation Authority (PRA) is insisting that the Group deals with.

The Co-operative, in turn, stated that it has a four-year turnaround plan and will implement ‘self-help measures’ to drive cost savings.

The total pre-tax loss for the period for the Co-operative Banking Group is £709.4m.

Outside of its banking arm, the Group's other areas such as food and specialist businesses did produce profits.

Co-operative Bank was the most-used primary bank for charities with an income between £1m and £5m in Charity Finance’s 2013 Banking Survey, and was the third most popular for those with an income between £5m and £20m.

Euan Sutherland took up the role of chief executive of Co-op Group in May this year, and he said that 2013 has been “a very difficult first half” for the Group, and stressed that recovery would be difficult but achievable.

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