The head of the Co-operative Group has admitted that there are “no quick fixes” for the group, after heavy losses at its banking arm dragged the group £559 million into the red.

The company faces a £1.5 billion hole in its balance sheet, having already written off £496 million of bad loans at the Co-op Bank.

Including the write-downs, Co-op Bank alone reported a total loss of £709 million, whilst the Co-op Group's food and other businesses reported profits.

The results were not unexpected, but chief executive Euan Sutherland said that there are “no quick fixes” to the group’s turnaround.

"This has been a very difficult first half for The Co-operative Group and the results highlight both the well-documented challenges faced by The Co-operative Bank and the significant work to do at Group level. Importantly, today's announcement also underlines the need for the £1.5bn Capital Action Plan we announced in June to stabilise the Bank, which we reaffirm today and which remains on track,” he said.

"We remain convinced of the considerable potential to be realised across the Group and are confident that we are well placed to restore the Co-operative brand to its rightful place at the heart of communities up and down Britain. We will recapture the relevance of the Co-operative Group by bringing modern day disciplines and performance management to bear on the mutual model.”