The lender, which raised £1.1bn of capital only last year, has discovered further costs related to mis-selling PPI, mortgages and interest rate swaps as well as "technical breaches of the Consumer Credit Act".
Niall Booker, chief executive, has said the result is the Co-Op Bank is starting on its road to recovery with a capital position that is "weaker than in the plan announced last year."
In October, the bank avoided collapse by striking a deal with a consortium of hedge funds and bond holders which handed 70pc of the bank to private investors and left the Co-operative Group with a 30pc stake in its subsidiary. The deal helped fill a £1.5bn black hole discovered in the bank's balance sheet last year following the meltdown of a deal with Lloyds to buy up its 632 "Project Verde" branches.
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