EY’s first public act as auditor of the Co-operative Bank has been to place an emphasis of matter paragraph into its interim statement review.
The Big Four firm, which replaced KPMG as the bank’s auditors earlier this year, said that ongoing issues affecting the lender, including ongoing capital raising and restructuring, may cast “significant doubt” on its ability to continue as a going concern.
EY’s paragraph came as the Co-op revealed a relatively positive set of six-month results.
A £75.8m loss was made for the interim period to 30 June 2014, but its capital position improved, employee numbers were reduced and it posted a credit impairment benefit of £86.7m as a result of “restructuring…two significant relationships”.
Co-op’s directors said in their own going concern statement that they “have a reasonable expectation that the Bank will have the resources to continue in business for the foreseeable future”.
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Burnet is currently the head of KPMG’s Financial Services team in Scotland