The UK’s Co-op Bank plans to raise around £400m ($660m) in capital via the sale of new shares after discovering further costs relating to previous misconduct.
These new costs relate to the mis-selling of PPI, mortgages and interest rate swaps as well as "technical breaches of the Consumer Credit Act".
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Chief Executive Niall Booker said a review into the scandal-hit lender’s operations had revealed issues that it needed to address.
He said: "Whilst these risks were identified in the Liability Management Exercise prospectus the review means we are now quantifying the financial impact of some of those risks.
"The result of providing for these items together with the cost of separation from the Co-operative Group is that the starting capital position of the bank for the 4-5 year recovery period is weaker than in the plan announced last year."
The lender, which had to raise £1.1bn in additional capital only last year, said it expected its capital ratio to fall from 9% to 7.2% only slightly above the regulatory minimum of 7%.
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By GlobalDataThe beleaguered bank has also pushed back the publication date of its 2013 annual report from 26 March to "on or before April 8".
The revelation of the latest shortfall will push overall losses at thank bank to between £1.2bn and £1.3bn for 2013.
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